The fund finance market has witnessed remarkable growth over the
past decade, with projections for 2025 indicating a continuation of
this upward trajectory. This growth is driven by an increasing
understanding and acceptance of fund finance products, alongside
heightened investor confidence. As the global economic landscape
evolves, the fund finance sector is undergoing significant
transformations that are reshaping how funds secure financing for
their operations and investments.
Overview
Historically low interest rates, substantial dry powder, and
investors' relentless pursuit of yield have propelled the
expansion of the fund finance market. As we look ahead to 2025, we
anticipate ongoing robust growth characterised by rising demand for
innovative financing structures and a broader diversification of
lenders. In Mauritius, subscription lines of credit have emerged as
the predominant form of fund financing. However, as the market
matures, alternative financing