fund finance

How the use of a subscription credit facility can change the return profile of a fund in good times and in bad.

Demand for subscription credit lines is now being driven by the needs of separate accounts, say Jeff Johnston and Mike Mascia of the Fund Finance Association.

Per Olofsson, head of alternative investments at the Swedish pension fund, said subscription credit lines should be used for capital efficiency and not to artificially boost IRRs.

The LP body is consulting with members on a range of topical issues as it prepares to refresh its ‘Private Equity Principles’ document.

Law firm Dechert wrote in its latest private equity newsletter that both investors and regulators are beginning to focus more on disclosure surrounding the use of lines of credit.

Against a ‘fragile’ economic backdrop, the listed firm continues to sell assets and invest only in existing portfolio companies.

In order to secure financing for bridging capital calls, your LPA must include certain terms.