In recent years, there has been growing market discussion about the increasing relevance of Term Loans in subscription financing. As the industry continues to evolve, Term Loans have emerged as a compelling alternative to traditional Revolving Credit Facilities (RCFs), reshaping how General Partners (GPs) approach capital efficiency and funding strategies.
Subscription (capital call) financing has grown into an $850 billion industry over the past decade, historically dominated by RCFs provided by banks. However, the introduction of Term Loans (TLs) by non-bank lenders has brought a transformative shift, offering new avenues for cost savings, enhanced flexibility, and bespoke financing solutions.
This white paper delves into the rising prominence of Term Loans, providing a focused overview of their integration into sub-line financing strategies. Key topics include:
- Cost Advantages: How Term Loans help reduce borrowing costs through lower margins and the elimination of commitment fees.
- Use Cases: Case studies demonstrating how Term Loans support early fund deployment, portfolio management, and end-of-life financing.
- Strategic Integration: Insights on combining Term Loans with RCFs to maximize both flexibility and cost efficiency.
This white paper is tailored exclusively for General Partners, offering an in-depth look at how Term Loans can enhance sub-line financing strategies, diversify capital sources, and boost operational efficiency.
Request your copy below.
Note: Access is strictly limited to General Partners.
