Fund Finance
Definition
Hybrid Facility
Fund finance structure combining subscription (uncalled commitments) and NAV (portfolio value) collateral. Flips over the fund lifecycle from sub-line dominant to NAV dominant as capital is deployed.
Deep Dives
Related Terms
Subscription Credit Facility
Revolving credit facility secured by a fund's rights to call uncalled LP capital commitments. Also called 'capital call line' or 'sub line'; collateral is LP promises to pay, not assets.
NAV Facility
Loan secured by the net asset value of a fund's investment portfolio. Distinct from subscription line: secured by existing assets (not future capital); used in later fund lifecycle.