2025 Global Fund Finance Symposium: Key trends in the fund finance market

Our Global Fund Finance practice recently sponsored and attended the 2025 Global Fund Finance Symposium. Hosted annually by the Fund Finance Association, these conferences bring together key players in the fund finance market, including investors, fund managers, bankers, and lawyers. The event offers the chance to gain deeper insights into the state of the fund finance market, explore the latest products, and network with industry peers.

Below, we provide key takeaways and trends that the symposium panelists identified.

• Significant growth in the fund finance market. The fund finance market has experienced significant growth, which is expected to continue in 2025 and beyond. This growth is due in part to an increasing acceptance of fund finance products in the market. For example, the Institutional Limited Partners Association has issued guidance that generally supports net asset value (NAV) facilities in certain circumstances. Similarly, bank lenders are now recognizing fund financings as an asset class they want more exposure to, becoming less skeptical of products like NAV facilities. There has also been an increase in the variety and amount of private capital entering the market, with many insurance companies looking to invest in fund financings due to their attractive risk-adjusted returns and the ratings assigned to products like subscription facilities.

• The importance of relationships. Lenders have emphasized that one of the most important factors when underwriting a fund finance transaction is their relationship with the asset manager. Lenders rely on their relationship with the asset manager in order to get comfortable with a more limited collateral package and/or more limited enforcement rights, which are common features of NAV financings.

• Increased partnerships between banks and asset managers. The trend of growing partnerships between commercial banks and asset managers in the fund finance space may become more evident in 2025. There is ample room for both banks and non-bank lenders in the market, and collaboration among these “competitors” has increased. The services offered by bank and non-bank lenders can be highly complementary. Bank lenders are often better suited to handle the more operationally intensive aspects of fund financing, such as subscription facilities, while non-bank lenders are often willing to take on bespoke credit risks, like NAV loans, thereby moving such risks off the bank balance sheet.

• Customization is key. Lenders are increasingly capable and willing to offer tailored products that meet the needs of borrowers. As the fund finance market has evolved, it has become clear that a “one-size-fits-all” approach is not suitable. Lenders have found it important to understand the asset manager’s business and concerns, and then work together to structure financing that effectively addresses those concerns. In response to the demand for customization, there has been an increase in hybrid facilities that asset managers can use throughout the life of a fund, and not just at its end.

The takeaways from the event were generally optimistic, which aligns with the findings of our Disruption in Financial Futures Report. The fund finance market is experiencing growth, driven by increasing acceptance of fund finance products, strategic partnerships, and a focus on customization.

As the industry evolves, these trends are expected to sustain and accelerate the momentum, solidifying fund finance as a critical component of the financial landscape.