Fund Finance: Case Studies
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Fund Finance: Case Studies

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Michael Schierhold, CFA

Senior Vice President, Head of Private Credit ABF

Suji Kang

Vice President, Credit Analyst

Justin Stach

Justin Stach

Managing Director, Head of Private Credit

Meeting Conference

Structured lending to funds can provide similar returns at potentially lower risk than investing as an LP, with limited J-curve effect—and a range of duration, rate profile, collateral, and risk options to suit most investor needs.

Key takeaways

  • The asset class: Fund finance refers to lending to private and alternative asset management companies, with four main sectors based on structure and collateral types: Subscription lines, portfolio finance, GP finance, and structured fund finance such as collateralized fund obligations (CFOs) and rated note feeders (RNFs).
  • The appeal: Fund finance is a diverse, well-established market with attractive spreads and a long history on which to base underwriting—and, in the areas where Voya specializes, primarily consists of investment grade opportunities.
  • Why now: The rapid scaling of private markets, supported by a broadening investor base beyond traditional institutional LPs, has increased demand for fund level liquidity management, including capital call bridging, portfolio level leverage, and GP financing. In parallel, muted exit activity has accelerated growth in secondaries and continuation vehicles, expanding the need for financing to support LP liquidity.
  • Case studies: Four case studies from recent transactions illustrate the wide nature of investment opportunities and collateral types in this asset class.
Exhibit 1: The four main types of fund finance
Exhibit 1: The four main types of fund finance

As of 04/15/26. Source: Voya IM.

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