Subscription Credit: Angel or Demon?
Private capital funds are using subscription credit facilities – bridge loans made to fund deals in lieu of making capital calls – more than ever. Usage has jumped from 13% in pre-2010 vintages to over 50% of 2015 and 2016 vintage vehicles. But the industry remains divided as to whether they are a legitimate means of managing cash flow, or a cynical ploy to artificially boost IRRs.
Already a member? Log in here