A wide range of institutional and non-institutional investors have historically used their holdings in private funds as collateral for borrowing in their investment portfolios. The motivations for doing so vary amongst investors. For instance, investors may wish to gain leveraged exposure to a given portfolio of underlying investments, obtain an optimal mix of debt and equity when investing in private funds, generate liquidity at the portfolio level without disturbing existing allocations or maintain dry powder to take advantage of emerging investment opportunities in periods of market dislocation.
We have experience of structuring a wide variety of financing solutions in order to help clients achieve their portfolio objectives.