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fund financing

Coronavirus impact on markets
Drawdowns could enable managers to pre-empt liquidity issues arising from the pandemic but may compound the problem for certain LPs.
fundraising
It’s a booming market that’s been synonymous with the banks in recent years, but a new source of capital has appeared on the scene.
Illustration of bundles of cash
Growing demands from GPs and investors have seen the market evolve rapidly in recent years.
Debt line
GPs can avoid potential liquidity issues by drawing down loans early and performing greater due diligence on their lenders.
Illustration of a man balancing on a dice
GPs must think carefully about how fund-level leverage affects performance at the fund level and, by extension, their own stability, writes veteran investor Neil Harper.
Under the hood
PEI caught up with Fi Dinh, who led ING's first ESG-linked revolving credit facility, to discuss fund terms, interest rate calculations and sustainability targets.
ESG sustainability
The bank provided a subscription credit facility for Singapore's Quadria Capital that pegs its interest rate to fund-level ESG performance.
Charts
Credit lines are contentious but their ability to improve IRR appears limited to the most strongly performing funds and funds early in their life, writes Christoph Jäckel of Montana Capital Partners.
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