Term Loan Solutions In Fund Finance

Interest rates rise, demand exceeds supply and the fund finance market adapts to a changing landscape. As we seek depth and breadth of new liquidity in our market, we have often wondered how to bring more non-bank lenders into agented subline facilities as participants. This search for meaningful non-bank lending continues as banks, funds and their respective teams are working harder than ever to fill capacity in their facilities.

There may be an enticing solution in sight. Specifically, an opportunity may exist in attracting some insurance companies and institutional investors via a term loan tranche. A term loan is more attractive to certain insurance companies because it is fully funded on day one and doesn't require rapid deployment of capital over the tenor of the facility (as is the case in a committed revolver).