We’re thrilled to share our Q2 2023 Market Report, a comprehensive report that provides insights into the evolving fund finance landscape.
- Refinancing Surge: Despite witnessing a decline in global private capital fundraising, there’s a distinct upswing in the demand for refinancing existing sub-line facilities. This trend is particularly captivating when examined in the context of the recent challenges posed by the U.S. regional bank crisis and its associated internal capital pressures.
- Supply-Demand Interplay in Sub-line Financing: A palpable imbalance between the supply and demand dynamics in the realm of sub-line (Capital Call) financing has emerged. This is manifesting in the form of widening spreads, influenced by a myriad of factors including the broader challenges faced by the banking sector and the uptick in funding costs.
- M&A Dynamics: The subdued activity in the M&A domain is prompting General Partners to pivot towards NAV financing solutions as a means to facilitate distributions. This pivot is driving heightened market engagement, with both traditional banks and alternative lenders actively participating.
The fund finance domain is in the midst of an intriguing phase, marked by shifting trends and strategies. Our report delves into these nuances, providing readers with a holistic understanding of the market’s trajectory.
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