Fund Finance

Multi-fund transactions remain the domain of large GPs, but experts note there’s more activity in single-fund versions for managers with less than $15bn in AUM.

The latest fund builds on a January partnership with Barings Portfolio Finance, PEI Private Credit can reveal.

The evergreen fund will be available to both institutions and private wealth investors.

The investor is also moving into other new areas of illiquid credit, including infrastructure and real estate financing, says founder and CEO Antoine Prudent.

Continuation vehicles present an interesting opportunity for fund finance, but concentration risk and a reluctant investor base pose a challenge.

Liquidity is not a great problem for established funds, but Corpay’s latest Lender Book Report finds emerging managers struggling to get what they require.

Developments including the evolution of use cases and a wider universe of lenders are creating a more flexible yet complex ecosystem.

As fundraising has slowed and exits become harder, fund finance in the region has never been busier, with GPs increasingly tapping into sources of liquidity.

The growth of continuation vehicles, evergreen funds and securitisation are contributing to the changing face of the fund finance market.