William Cowper once wrote that “variety is the very spice of life.” This could ring true in many circumstances, but is becoming particularly fitting for alternative asset managers, or AAM, when evaluating sources of liquidity across a variety of fund finance solutions. Since the dawn of finance, the differing requirements of debt providers has created a range of financing options across the private and public capital markets. For corporate borrowers, these markets are mature and well understood. However, for AAMs, the debt markets are relatively embryonic and ever evolving, with a range of capital providers. Here we explore the types of capital available to AAMs across the various fund finance products, and the growth of institutional capital in each.
