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Spring 2018 Fund Finance Market Review

21 March 2018
Fund Finance Market Review - Spring 2018
Our outlook for the fund finance market for 2018 is positive, as we expect the market to build upon the successes experienced over the last calendar year. In 2017 strong credit performance, record-breaking fundraising and product expansion fueled significant market growth. In addition to a significant uptick in the number of traditional subscription credit facility (each, a “Subscription Facility”) closings, Mayer Brown closed a record number of alternative fund financings. As expected with any mature market, however, we did see episodic defaults and borrowing base exclusion events in 2017. Such defaults were primarily technical in nature, and the exclusion events were isolated in respect of individual investors (each, an “Investor”) and did not indicate broader systemic issues for the Subscription Facility market or the private equity fund (each, a “Fund”) asset class. Below, we expand on our views on the state of the fund finance market as well as current trends likely to be relevant in 2018.

Authors

  • Zachary K. Barnett
    T +1 312 701 8841
  • Kiel A. Bowen
    T +1 704 444 3692
  • Ann Richardson Knox
    T +1 212 506 2682
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