Fund Finance 2021: Cayman Islands

The subscription credit and fund finance markets have remained relatively robust over the course of 2020, though the COVID-19 pandemic has presented certain challenges for market participants. Growth in this area over the past few years was driven in part by expansion of the product into a broader range of fund types, increasing take-up by fund sponsors who had not traditionally used the product in their fund families, record levels of fundraising and an increasing number of net asset value (NAV) facility closings.

Overview

While certain banks have continued to increase their book of business and new Lenders have emerged on the scene, others have taken a step back for the time being. Given that strong credit performance remains the norm in this market, the relatively low-risk profile of the product will continue to make it attractive for Lenders.