Hedge Funds Nuts & Bolts: An Overview of Subscription Credit Facilities

Subscription facilities are credit lines for closed-end funds that are secured by pledges of investors’ capital commitments and the funds’ rights to call capital. The subscription line market has been growing exponentially, with record-setting equity raises by private equity and private credit funds driving much of this growth. As the size and complexity of these subscription lines has increased, sponsors and lenders have been wrestling with an increasing number of issues relating to the intended use and structure of these facilities.    

In this webinar, Matthew K. Kerfoot from Dechert’s Fund Finance Group provides an overview of subscription facilities and the key issues sponsors and lenders need to consider in negotiating, documenting and structuring these facilities.