Capital Call Finance
Superior risk-adjusted returns with investment grade risk profile and short duration

 

Capital call facilities, often referred to as subscription lines, have become an important financing tool for private market funds. Currently, the market for capital call finance is estimated to be more than $800 billion. While banks have traditionally dominated this space, there is growing interest from institutional lenders. 

(Source: Preqin, October 2023.  Future of Alternatives 2028 Report)

Introduction to Capital Call Finance

 

Capital Call Finance offers institutional investors a unique opportunity to gain exposure to short term loans with attractive risk-adjusted returns and low credit risk. Discover how this strategy delivers value, stability, and alignment with investor goals. 

Find out more
Fund Finance through the life cycle of a fund: where does Capital Call Finance sit?
  • Senior loans provided to private market funds to prefund Limited Partner (LP) capital calls or leverage returns to fund participants.
  • Loans are collateralized by the uncalled contributions of LPs.

 

Why Invest?

Target yield of typically
Euribor +175 - 250 bps*

Portfolio diversification compared to public markets it offers investment opportunities linked to different risk drivers

Liquidity and Short Duration: majority of drawn maturities of 3 to 12 months ensuring regular repayment and frequent capital redeployment. This short maturity profile provides investors with liquidity in what is otherwise considered an illiquid asset class

Favorable Solvency II treatment – low SCR charges based on high credit quality and short maturity

*Target yield are gross yields as observed in current market circumstances. Target yields may be subject to change. Capital Call Financing spreads; EUR facilities average AA/A based on Aegon AM investment pipeline data.

Why Aegon AM?

 

  • Sizeable and seasoned investment team with extensive experience in Fund Finance since 2018

  • Solid track record of transaction sourcing and execution

  • No credit migration to date

  • Proven, well established origination network

  • Proprietary credit underwriting and ESG analysis and monitoring 

Fund information

 

SICAV – RAIF Luxemburg domiciled Fund >>