When we talk about "fund financing", discussions tend
to focus on subscription line facilities - the traditional
"capital call" facility is the original cast member in an
industry which has evolved and grown substantially over the last 15
to 20 years.
Data today suggests 90 percent or more of European closed-ended
funds currently being established will intend to use a subscription
line. This is a credit facility provided to predominantly
closed-ended funds, including private investment funds, which is
secured on the fund's ongoing rights to call for, and receive,
capital from its investors— whether for short-term equity
bridge financing, liquidity and cash flow management, or for other
reasons.
