Fund Finance

Unique access to emerging value opportunities

Why invest in Fund Finance?

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.

Superior risk-adjusted returns with IG risk profile
Portfolio 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

Private market funds borrow at different stages of their lifecycle. As such, we distinguish between different types of fund finance:

 

1. Capital Call Finance

  • Loan with recourse to the fund investors (Limited Partners)

  • Diverse pool of LPs consisting of pension funds, insurance companies and endowments

 

 

2. NAV Finance

  • Loan with recourse to the fund’s investments

  • Low LTV loans:
    • 10– 20% (single fund)
    • 30 - 50% (secondaries)
Why Aegon AM for Fund Finance?

 Fund Finance is one of our core capabilities.

Resources and track record
  • Global investment team across Europe and the US.
  • Over €4 bn investments made since 2018.
  • Over €1 bn seed capital raised for upcoming Lux RAIF investment funds.
  • No credit migration to date.
Sourcing and alignment
  • Co-investing next to key strategic investors of Aegon Group.

 

 

 

Product range
  • Capital call and NAV Finance
  • Tailored to institutional investors
  • Investment Grade risk profile
  • Strategic sourcing network through global lending banks  
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