Private Credit: Subscription Line Performance Still Shines

Subscription facilities (also known as capital call facilities or sub lines) are a fund finance product introduced in the 1990s that have experienced steady growth, reaching an estimated $850 billion globally.¹ KBRA-rated subscription facilities have also grown at an accelerated pace since we rated our first facility in 2018. KBRA has assigned ratings or provided credit assessments on 181 subscription facilities through year-end 2024, with issuance volume totaling $132 billion and rated/assessed debt exposure totaling $46 billion. When we published a related KBRA report in April 2023 (see Funds: Subscription Facilities in Focus), we had cumulatively assigned ratings to over 40 facilities totaling $11 billion of rated debt. Since then, both the number and dollar volume of KBRA-rated/assessed facilities have grown more than…