A new Maples Group industry analysis finds the fund finance market holding steady through mid-2025, with subscription credit lines leading deal flow in both the United States and Europe and growing interest in bankruptcy-remote structures to manage risk, according to the 2025 edition of “FUNDed.”
The report’s authors say US activity has been buoyed by strong subscription-line demand even as fundraising remains uneven. Maples’ Cayman office alone closed more than 120 new financings in the first half of the year, while subscription lines accounted for roughly 71% of new US deals versus 16% for net-asset-value (NAV) loans. Hybrid facilities remained a small share at about 4%.
In Europe, rate cuts and sustained liquidity needs helped push subscription lines to about 80% of new fund finance transactions across the firm’s offices so far this year, with most facilities committed for one- to two-year terms. Refinancings and amendments continued at a brisk pace, often to extend maturities. NAV deals represented about 20% of new activity, with traditional lenders financing the majority.
Amend-and-extend work remains common on US subscription lines, with more than 160 closed amendments in the first half and 61% including term extensions. About 41% reduced margins as borrowers benefited from competitive conditions, the report said. NAV amendments were fewer, reflecting the smaller deal pool and longer tenors.
The adoption of bankruptcy-remote structures in fund finance remains a key trend in 2025, the analysis notes, pointing to increasing use, particularly in Cayman-based structures, to optimise credit quality, legal certainty and pricing. The authors also highlight early-stage interest from insurance companies exploring structures to participate in fund finance.
Looking ahead, the Maples Group anticipates a strong finish to 2025, with potential rate cuts adding near-term momentum. NAV facilities are expected to remain a key tool for managers facing subdued M&A and limited exits, while subscription lines are projected to stay active despite fundraising headwinds.
