Fear recedes over fund facilities

Chart

Initial wariness over subscription finance has given way to acceptance – at least when it comes to brand-name GPs.

“Leverage is a sensitive topic for LPs,” says Carolina Espinal, managing director at HarbourVest Partners. But while skepticism was rife in the early days of the subscription finance market, when limited partners feared that the facilities were being used to manipulate optics and boost internal rates of return, there is now a broad consensus that the advantages in terms of treasury management outweigh any initial concerns.