The Fund Finance Association’s (FFA) 14th Annual Global Fund Finance Symposium was held at the Fontainebleau in Miami Beach on February 24-27. The event was well attended with over 2,500 registrants, attracting market participants including investors, fund managers, bankers, lawyers, and credit rating agencies (CRA). KBRA was a platinum sponsor of the event. Below is a summary of our key takeaways from the symposium’s panels.
Fund Finance Market Update
Panelists discussed key market trends that shaped 2024, including:
- Growing acceptance of net asset value (NAV) loans. The Institutional Limited Partners Association (ILPA) issued guidance in July that supported the usage of NAV loans as a financing tool but confirmed the need for borrowers to offer limited partners (LP) sufficient transparency and disclosures. The new guidance provided certainty that helped NAV loans gain wider acceptance.
- Pricing compression for both subscription facilities and NAV loans. This trend has…