Over the past few years, the fund finance market has seen net asset value (NAV) financing grow alongside more established “subscription line” facilities, to become an established part of the fund financing toolkit and an increasingly accepted leverage option for use at many points across the fund life cycle.
As the use of NAV facilities has expanded, so too has the range of purposes for which they are used. As an asset-based financing technique, NAV has often been used to provide portfolio-level leverage on established pools of private investments such as private equity or infrastructure holdings. However, of late we have also seen increasing use of NAV as a means of acquisition finance.
This article considers the particular structural and documentary implications of the use of NAV as an acquisition finance tool. We consider these issues in the context of two transaction types that are increasingly commonplace in the European market: secondaries portfolio acquisitions and continuation vehicle transactions.
After three quarters of now more detailed reporting on bank lending to non-bank financial institutions, we’ve learned a few things about the loan category that captures fund finance loans for U.S. banks. Loans to nondepository financial institutions (NDFIs) is the fastest growing lending category to date in 2025 but also the cleanest, showing the lowest delinquency rate among major bank loan types.
The AIF Rulebook issued by the Central Bank of Ireland (the “Central Bank”) currently restricts an Irish Qualifying Investor Alternative Investment Funds (an “Irish QIAIF”) from acting as a guarantor on behalf of third parties. The term “guarantor” is not defined in the AIF Rulebook and accordingly, it was generally understood in the Irish market that an Irish QIAIF was prohibited from providing a guarantee and/or security for the obligations of a third party other than a wholly owned or controlled subsidiary or limited partnership.
Cadwalader is excited to welcome Mike Freno, Chairman and CEO of Barings LLC, as the keynote speaker for the 2025 Cadwalader Finance Forum!
Cadwalader, Wickersham & Taft LLP recently advised a global financial institution on a landmark transaction that included a forward flow agreement providing for the sale of interests in subscription credit facilities to Värde Partners’ recently launched fund finance platform.
The Fund Finance Association is thrilled to introduce the lineup of speakers for FFA University 2.0 in Charlotte including Cadwalader’s own Angie Batterson and Wes Misson!
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As the fund finance market continues to mature, subscription credit facilities remain a cornerstone for providing essential liquidity to funds, allowing managers to efficiently bridge the gap between capital calls and investment opportunities. With the landscape shifting toward larger lender commitments, often exceeding $1 billion for marquee sponsors, syndicated facilities are increasingly in the spotlight, offering a way to meet borrower demand and manage risk. For lenders, syndication reduces exposure to a single facility while offering fee income; for borrowers, it mitigates the risk of an individual lender's ability to fund. The battle to secure Agent roles has heated up considerably, as clinching such a position not only brings agency fees but also paves the way for repeat engagements. An Agent from a prior vintage can point to established precedents as a compelling edge in bidding for the sponsor's next facility, setting mutual expectations and confining negotiations mostly to economic essentials like pricing and fees.
This article will cover the fundamentals of syndication in fund finance, the critical choice between bilateral and syndicated approaches at initial closing, key factors to weigh when starting bilaterally with syndication in mind, the mechanics of the amendment process post-closing, and practical steps to ensure a seamless syndication. While bilateral facilities still account for over 80% of the market by deal count, syndicated facilities represent roughly half of total lender commitments. As we attempt to look forward, emerging trends such as the integration of term loan lenders and NAV hybrids could further shape how syndications unfold.
Fund finance is evolving from a bank-dominated sector to a broader credit ecosystem. Fund Finance Friday readers are likely already aware of insurance capital emerging as a transformative force, bringing long-duration capital, credit risk tolerance, and balance sheet strength to the fund finance space. However, what is lesser known is that the other side of insurance business, the liability side, is also playing a significant role in strengthening and boosting existing lender’s’ fire power into an ever-expanding market.
Cadwalader’s Carla Pilcher and Emina Hodzic sat down with Punit Mistry, CFA, FRM, Jamie Stephenson and Steve McCafferty from Howden CAP, a specialist arm of Howden Insurance Brokers, (“Howden”), to talk about how credit risk insurance is being used in the Fund Finance space by banks and non-bank financial institutions (“NBFIs”) alike.