Lucaria · Products · Fund Finance
$10M – $250M+Fund Finance
Facilities for funds and their GPs — NAV loans against portfolio value, capital-call lines against uncalled commitments, GP-commitment financing, and credit against hedge-fund positions — one desk across the whole structure.
Who it’s for
- GPs funding accretive follow-ons, cure situations, or a bridge to a continuation vehicle.
- Funds past their investment period that need liquidity without selling assets at the wrong price.
- Principals financing GP commitments or borrowing against hedge-fund and fund positions.
Why Lucaria
- We run a competitive process — multiple term sheets, not the incumbent lender’s only offer.
- Diagnose, procure, structure: the use of proceeds decides the facility, not the other way around.
- NAV, sub-line, GP, and portfolio credit from one desk — the structure gets designed whole.
Market bands, told straight
Honest numbers
Fund finance is bespoke, but the market’s bands are observable:
- NAV facilities
- typically 5–25% of portfolio NAV · 1–5 year terms
- Capital-call lines
- advance against uncalled commitments of creditworthy LPs — the tightest pricing in fund finance
- Hedge-fund positions
- roughly 25–50% advance on single-fund positions; higher for diversified portfolios
- Pricing
- floating; NAV facilities typically SOFR plus a mid-single-digit spread — structure-dependent
Bands, not a quote. Portfolio concentration, LP quality, and documentation terms move every number here — which is exactly why the process should be competitive.
How we structure it
Structured to the use of proceeds
A NAV loan for an accretive follow-on is a different animal from one bridging a continuation vehicle. We diagnose first, then procure competing term sheets, then structure and close.
- Use-of-proceeds honesty: accretive follow-ons, protective cures, DPI to LPs, special situations — named as what they are
- LPA review up front — what your documents permit, and what needs LP consent, before any lender call
- Gates, lockups, and side pockets addressed in structure on hedge-fund collateral
- GP-commitment facilities recoursed to GP economics — carry and fees — by design
The honest read
Why banks say no — and why that isn’t the end
- Most banks stop at the subscription line — NAV and GP facilities sit outside their model.
- Fund credit is bespoke: without a competitive process, the incumbent lender prices like an incumbent.
- Below institutional minimums, mid-size funds are underserved — exactly the gap this desk covers.
Common questions
Fund Finance, answered straight.
- Does a NAV facility require LP approval?
- It depends on your LPA. Some documents permit fund-level leverage outright, some cap it, some require LP consent. We review the docs before any lender call, so the answer is known — not discovered mid-process.
- What do funds actually use NAV loans for?
- Named honestly: accretive follow-ons into winners (including late-stage rounds), protective capital to cure a covenant or support a portfolio company, bridges to a continuation vehicle, DPI to LPs, and special situations. The use of proceeds shapes the structure, so we start there.
- How fast can a capital-call line fund?
- Once the line is in place, draws bridge capital calls in days. Sub-lines are also the tightest-priced credit in fund finance, because the collateral is the uncalled commitments of creditworthy LPs.
- Can principals finance the GP commitment?
- Yes. GP-commitment facilities fund the general partner’s own commitment to the fund, typically with recourse to GP economics — carry and fee streams — rather than to the principals’ other holdings.
- Can I borrow against a hedge-fund position?
- Yes — single-fund positions typically support an advance of roughly 25–50%, higher for diversified portfolios. Gates, lockups, and side pockets are handled in the structure, not ignored until they bite.
- Why is this a business loan?
- The borrowers are funds, general partners, management companies, and investment entities, and the proceeds serve investment purposes. This is commercial credit to investment businesses — never financing for personal, family, or household use.
No obligation
Tell us what you need.
No credit pull to start. We’ll show you the honest options for fund finance — and if borrowing isn’t the answer, we’ll say so.