Summary
This document is a guide that provides an overview of various fund finance structures available to fund sponsors. It details the evolution of the fund finance market, highlighting the sophisticated financing tools that lenders offer, which are tailored to specific entities within the fund's organizational structure. The guide outlines key debt structures such as subscription lines, NAV facilities, hybrid facilities, loans to qualified borrowers, and management company credit facilities. For each structure, it summarizes the typical borrower, collateral requirements, and the purpose of the financing. Additionally, it explains the role of lenders in helping fund sponsors evaluate these financing solutions while balancing operational flexibility with risk management. The document also discusses legal considerations and diligence requirements associated with each financing tool, emphasizing the importance of understanding intercreditor dynamics and regulatory constraints. Overall, it aims to demystify the relationships between these products and assist sponsors in strategically layering and sequencing them as their funds evolve.
