Activity in the US fund finance market increased in 2025, led by growth in subscription credit lines and continued expansion in net asset value, or NAV, financing, according to a year-end review from Maples Group.
In its FUNDed publication, the firm said it advised on more than 800 US fund finance transactions that closed during the year, citing a strong second quarter driven by new subscription line facilities and steady amend-and-extend activity. Overall volume for new US subscription lines rose more than 15% from 2024, with over $22 billion in committed facilities across more than 50 lenders and 120 fund managers.
Subscription lines accounted for about 68% of all new US fund finance deals in 2025, peaking at roughly 79% in the second quarter before slowing toward the end of the year. The firm attributed the mid-year surge in part to fundraising closes and managers seeking liquidity ahead of capital calls. Most new facilities remained committed, though uncommitted lines edged up to 12% of deals.
Shorter tenors continued to dominate the market. Facilities of one to two years represented nearly 55% of new committed subscription lines, while two- to three-year terms rose sharply compared with 2024. Pricing on SOFR (Secured Overnight Financing Rate)-linked subscription lines declined over the year, with average margins falling from about 2.3% in the first quarter to just under 2% by the fourth quarter.
NAV financing showed more varied pricing and structure, reflecting lower deal volumes and longer maturities. Average margins on SOFR-linked NAV facilities ranged from about 2.5% to 3.2% during the year, with four- to five-year tenors making up nearly half of new deals. Banks remained the primary lenders, though non-bank lenders participated in about 14% of new NAV transactions, down from 2024.
The review also highlighted increased use of bankruptcy-remote structures in US NAV facilities. Such structures were used in roughly 23% of new NAV deals in 2025, up from 13% the year before, as managers and lenders sought to isolate risk and support higher leverage or ratings, the firm said.
Looking ahead to 2026, Maples Group said it expects subscription lines to continue anchoring the fund finance market, with further growth anticipated in NAV financing and ongoing demand for shorter, extendable facilities amid lender competition and uncertain interest rate movements.
