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By: John Anderson, Reid Bagwell, Ravi Chopra | Goodwin
The year 2024 was one of innovation and growth for the fund finance market. In October, Ares published its fund finance whitepaper, in which it estimated the global fund finance market to already be $1.2 trillion and growing toward a market of more than $2.5 trillion by 2030.
After a busy year for the Goodwin fund finance team, we pause to reflect on the year just passed and, as we gear up for the 2025 Global Fund Finance Symposium later this month, consider what trends we anticipate for 2025.
Our experts provide their reflections from across a selection of jurisdictions and asset classes within the global market, and we spotlight some particular current areas of interest, such as preferred equity, the LP angle on NAV financing, debt solutions for continuation vehicles, and the role of fund finance for credit funds.
USA
Subscription Financing
In the US subscription-secured credit facility space, while many 2023 trends (including limited availability from many traditional lenders) continued into 2024, fund sponsors over the past year have benefited from the stabilization of - and in many cases a reduction in - fees and interest rate spreads compared to the prior year.
In what remained a slower fundraising environment for fund sponsors in 2024, we also continued to see a reduction in both maximum facility amounts relative to fund size and initial tenor for many funds (with the exception of c...................... To view our full article Click here
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