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Private Funds CFO Article on Why Fund Finance Is in High Demand
February 12, 2021 | Issue No. 113

According to a Private Funds CFO article published on February 8th, there is heightened interest in using subscription lines to ride out some of the ongoing pandemic. Matt Hansford, head of origination and NAV financing at Investec Fund Solutions, points out how subscription finance has allowed borrowers to bridge through fund closes in light of longer fundraising periods and make improvements to the business in the short-term. Beyond the challenges posed by the pandemic, borrowers are expected to turn more heavily towards NAV-based and hybrid facilities; in particular, borrowers have been converting existing subscription facilities into hybrid facilities toward the back end of their investment periods in order to account for net asset value. Click here to read the full article.

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