Emerging Trends In Offshore Subscription Finance Deals

The fund-raising market continues to be challenging for alternative investment funds. With the withdrawal of many high net worth investors following the financial downturn and the scarcity of traditional bank financing, sponsors have had to look for alternative sources of capital to bridge the funding gap. At the same time, the alternative fund landscape has experienced (or is in the process of experiencing) significant regulatory change and uncertainty, particularly in North America and Europe.

However, the subscription finance market is thriving. This is not surprising as it has experienced few defaults historically, and is therefore attractive to lenders. There is also evidence that pension funds, endowments, public investors and Sovereign Wealth Fund investors are increasing their investments into actively managed alternative funds to access opportunities in their struggle to find returns. After all, global equities have been underwater since 2007 and are not