Subscription Credit Facility Market Review
26 September 2016
Fund Finance Market Review - Fall 2016
Fund Financings continued positive growth and strong credit performance as an asset class through Q2 2016. Capital call subscription credit facilities (each, a “Facility”) continued their steady growth and followed the uptick of closed funds and capital raised through Q2 2016. Investor capital call (each, a “Capital Call”) funding performance continued its near-zero delinquency status, and we were not aware of any Facility events of default in 2016 that resulted in losses. Below we set forth our views on the state of the Facility market and current trends likely to be relevant in the latter half of 2016. In addition to such trends, this Market Review touches on Brexit and its impact on the Fund Finance markets, developments in Irish regulated funds, developments relating to the introduction of Cayman limited liability companies, and hedging constraints and Facility attractiveness.