Fund Finance

Unique access to emerging value opportunities

Driven by the exponential growth of private market funds, especially in the last decade, a scalable investment opportunity has developed for fund finance. Fund finance to date has been largely dominated by bank financing but institutional investors are increasingly discovering attractive investment opportunities offering relative value and diversification to alternative risk drivers.

What is Fund Finance?

 
The market for fund finance is growing rapidly. In this video, Bas Kragten, Head of Fund finance & Infrastructure, introduces Fund Finance, focusing on Capital Call Financing and NAV Financing - the two market segments we are active in. Bas discusses where the premium over liquids comes from but also what the main risks are in relation to this type of financing.  

 

Two types of fund finance:
Why invest?
Why Aegon AM?
Overview of our key Fund Finance strategies

At Aegon Asset Management we offer two distinct Fund Finance strategies, each at different stages of the PE fund’s life cycle. Past performance does not predict future returns.

 

 

Capital Call Finance

NAV Finance

Target yield*

3m Euribor + 175 - 250bps

3m Euribor + 225 - 400bps 

Credit quality

AA / A

A / BBB

Weighted average life

Majority of assets have drawn maturities between 3-12 months  

 

Expected WAL: 3 - 5 years

Target Structure

  • Co-investment structures with specialized banks offering access to deal pipeline

  • Loan by loan underwriting while benefiting from strong ‘alignment of interest’ with bank lenders

  • Drawn facilities

  • Co-investment structures with specialized banks offering access to deal pipeline

  • Loan by loan underwriting while benefiting from strong ‘alignment of interest’ with bank lenders

  • Term Loan facilities

Loan Purpose

Working capital to prefund LP commitment drawings

Add on acquisitions (PE Funds) in harvesting phase & Limited Partner distributions

Fund pages

More information >

More information >

 

Source: Aegon AM. As of March 2025.

*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.

 

Aegon Asset Management Luxembourg RAIF Funds is a reserved alternative investment fund (Fonds d'Investissement Alternatif Réservé) in the form of a public limited liability company with variable capital established and existing under the Luxembourg law. It is structured as an umbrella fund, including a number of ring-fenced sub-funds and as of today two of the sub-funds have been notified to the CSSF: Aegon IG Insured Credit Fund (notified on 29 September 2022) and Aegon Capital Call Finance Fund (notified on 7 February 2025). Carne Global Fund Managers (Luxembourg) S.A. has been appointed as the alternative investment fund manager of the RAIF (AIFM) and its sub-funds and Aegon Investment Management B.V. has been further delegated by the AIFM to act as the investment manager of the RAIF and its sub-funds.

 

The RAIF and its sub-funds are not directly subject to the regulatory supervision of the CSSF. As per common Luxembourg practice, regulatory oversight is performed via supervision on the licensed Alternative Investment Fund Manager (AIFM) of the Fund, who is required to disclose to the CSSF the Alternative Investment Funds (AIFs, including RAIFs) as well as their sub-funds, that it manages and deposit the relevant fund documents with the CSSF.  The authorised, licensed and supervised AIFM also must ensure that the RAIF managed by it complies with all AIFMD requirements applicable, including amongst others, the appointment of a depositary and an independent auditor. In this sense, a RAIF is an indirectly regulated fund in Luxembourg.