Private Credit Boom Pushes Fund Finance Market Past $1 Trillion

The fund finance market has surged past $1 trillion, according to a pair of new reports, as money managers borrow more to manage liquidity and bridge delayed exits.

Fund finance vehicles lend money to the $16 trillion global market of private credit and equity funds. The vast majority of that borrowing is in the form of debt called subscription lines, which fund managers use to borrow against capital pledged by limited partners but not yet deployed.