This website uses cookies. By using this website, you agree to our Cookie Policy.
The Fund Finance Market in 2024 and 2025: A European Perspective
Reprinted from: International Comparative Legal Guide | 08/20/2025Cadwalader partners Bronwen Jones, Douglas Murning, George Pelling and Matt Worth recently authored the chapter, “The Fund Finance Market in 2024 and 2025: A European Perspective” in the International Comparative Legal Guide - Alternative Investment Funds 2025.
The authors note that 2024 was a pivotal year in which fund finance emerged as a genuine asset class in its own right. Despite weak fundraising after the 2023 U.S. banking crisis and sustained rate hikes, origination remained strong, driven by refinancing and NAV finance. Top‑tier sponsors raised record‑sized mega funds, benefiting from a flight to quality among investors.
NAV facilities are now an increasingly accepted part of the financing toolkit, with ILPA’s 2024 guidance marking a significant milestone. At the same time, non‑bank lenders and private credit funds brought new flexibility and liquidity, often in partnership with banks.
The market also saw the first publicly rated securitisation of capital call facilities, highlighting growing convergence with structured finance and rising investor appetite. Borrowers are already considering securitisation at origination, a trend expected to increase deal flow and drive efficiencies.
Looking ahead, geopolitical uncertainty, protracted holding periods and investor demand for liquidity will fuel further growth. Combined with increasing appetite from private credit, these dynamics point to a robust and innovative fund finance market in 2025 and beyond.
Read the full chapter here.
