Key Takeaways From the Inaugural Fund Finance Association Fall Forum
The Fund Finance Association held its inaugural Fall Forum in Midtown Manhattan on October 15, 2026. With more than 700 registered attendees representing sponsors, banks, alternative financing sources, law firms, fund service providers, and the Latham & Watkins Fund Finance Practice, the Fall Forum brought together leading voices in fund finance for conversation and panels to share insights on recent market developments and discuss expectations for where the market is heading.
Proliferation of Fund Finance Products
Sponsors, lenders, and their counsel continue to expand the menu of financing solutions available to address the challenges facing funds, sponsors, and investors. The past 18 months have been marked by the development of bespoke facilities and structured products tailored to specific fund and manager needs, including asset-based and GP-level solutions.
Rated Note Feeders
Panelists noted a continued focus on rated note feeders — feeder vehicles that issue rated debt and equity to investors, often insurance companies, in lieu of direct LP interests — as investors push sponsors to provide products tailored to their risk and regulatory capital charge requirements.
Subscription Credit Facilities
In the current fundraising environment, subscription credit facilities (sublines) are increasingly relied upon to bridge investor closings from early in a fund’s life through the capital-raising period. Sponsors are staging early high-credit investors to address lender concentration concerns following early fund closings. The market also continues to see new financing sources, including non-bank lenders, enter this part of the market.
NAV Loans
Borrowers are seeing lower offered loan-to-value ratios (LTVs) as interest rates, sector volatility, geopolitical events, and the economic outlook weigh on valuations. Participants indicated that NAV proceeds are increasingly directed toward portfolio investment rather than distributions, although these facilities remain a versatile tool for addressing a wide range of sponsor needs.
Fundraising
Sponsors have adopted a “continual fundraising” approach, engaging regularly with existing and prospective investors even outside an active capital-raising period. With the proliferation of fund products, sponsors want to understand investor demand so they can tailor the offering for their next fund.
Ratings
Rating agencies are focused on greater look-through transparency into underlying investors and portfolio assets as rating methodologies for fund finance structures continue to develop.
Long-Held Assets
Sponsors are relying on continuation vehicles to hold assets for longer periods, given the subdued IPO market and limited exit opportunities. These vehicles present opportunities to introduce new leverage, the proceeds of which can be used for a range of liquidity- or return-related purposes, such as distributions to LPs or follow-on investments in portfolio companies.
GP Commitments
Sponsors are utilizing GP facilities to fund GP commitments, maintain liquidity, and support long-term planning, particularly in situations where investors expect larger GP commitments to their funds.
Market Perception
Panelists discussed the role that media coverage can play in shaping perceptions of the industry and the market at large, noting that, despite recent headlines, the market continues to see a significant amount of activity and opportunity.