Fund Finance Association 2026 Global Fund Finance Symposium: Key Takeaways from Miami

The Fund Finance Association (FFA) held its 15th Annual Global Fund Finance Symposium at the Fontainebleau in Miami Beach, Florida on February 2-4, and brought together fund managers, lenders, investors, insurers, rating agencies, and advisors from across the global fund finance ecosystem.

Morrison Foerster attorneys attended multiple panels, with several themes emerging consistently throughout the conference. Below is a summary of our key takeaways from the symposium’s panels.

Regional Market Comparison – U.S./EMEA/APAC

Panelists characterized North America as the most mature fund finance market, with subscription facilities still the dominant product, while hybrid and net asset value (NAV) facilities continue to grow as sponsors gain comfort and look for a broader suite of liquidity tools. A key theme was a shift in how NAV facilities are discussed, away from their overall risk and toward their practical applications. Use cases for NAV facilities that often have caused LP sensitivities (for example, dividend recap-style leverage) have become less prevalent, lowering their risk profile for wary LPs. LPs have a broader understanding of ways NAV financing can provide solutions to GPs.

In APAC, panelists emphasized that the region is not one market, but many submarkets. Singapore and Hong Kong remain hubs; Australia was repeatedly described as highly sophisticated and structurally innovative; Japan is viewed as emerging, with momentum supported by a June 2025 model investment LPA published by Japan’s Ministry of Economy, Trade and Industry that includes provisions facilitating subscription financing mechanics. That said, panelists noted ongoing structural frictions, especially around security over deposit accounts and reliance on account bank cooperation.

Regulatory focus diverges by region, with comments highlighting (i) heightened transparency expectations in the U.S., (ii) sponsor exposure scrutiny (notably in Australia), and (iii) evolving frameworks in Europe, including discussion of CRD 6 and uncertainty driven by national-level implementation questions. Panelists also flagged U.S. outbound investment restrictions as a developing issue for financings secured by equity interests with China and Hong Kong-related exposure in sensitive technology sectors, which is beginning to show up in credit agreement representations and covenants.

Global Bank Syndication Outlook: Liquidity, Capital Pressure, and Market Evolution

Panelists described 2025 as a high-liquidity environment with compressed pricing and a larger universe of participating lenders, including non-bank entrants and insurers. Sponsors are pushing for execution certainty and speed, and lenders are differentiating through responsiveness and ability to deliver “repeatable” terms across fund vintages and platforms.

The panelists also noted a continued evolution in facility structures (e.g., term and revolver components; more tailored tranching), and an increasing emphasis on documentation discipline given increased complexity and broader syndicates. They discussed capital- and risk-weighting and rating considerations, with private ratings and rating-agency engagement becoming a more common feature in the market toolkit, particularly as alternative capital providers use ratings to reach different points on the capital curve. For 2026, panelists anticipated ongoing competition for capital allocation, especially for smaller facilities and first-time managers, and suggested that the ability to deploy capital efficiently (and consistently) will remain a key competitive axis.

NAV Lending as a Liquidity Tool for GPs

This panel reflected a clear maturation of NAV financing: NAV is increasingly framed less as a simple bridge to distributions and more as a strategic tool for value creation, including follow-on investments, accretive M&A, and supporting a fully deployed posture, especially in an environment of slower realizations. Panelists emphasized that investor scrutiny is shaping both product use and documentation, including increased attention to NAV in investor questionnaires and fund documentation practices.

From a structuring perspective, the discussion highlighted recurring focal points in NAV facilities:

(i) security and enforceability (what is pledged and when enforcement is available), (ii) the path to enforcement (soft vs. hard loan to value (LTV) breach concepts, standstills, workout frameworks), (iii) valuation governance (manager valuation processes, lender challenge rights, triggers, frequency and cost allocation), (iv) LTV calibration and portfolio composition issues, and (v) cash sweep mechanics as a core stability and alignment tool in down markets.

The panelists also drew a practical distinction between fund-level NAV and GP-level NAV financings. GP-level financings can involve different cashflow sources (management fees, carried interest, GP commitments, and proprietary investments) and broader use cases (succession planning, supporting new vintages, and bridging valuation mismatches), but can raise heightened diligence and reputational considerations. Panelists noted that ratings are increasingly part of the conversation, but the fundamentals remain: portfolio quality, governance, leverage control, and structure all contribute to risk outcomes and “ratability.”

Continuation Vehicles and the Evolution of Fund Liquidity

Panelists described continuation vehicles (CVs) and GP-led transactions as a durable feature of the liquidity landscape, driven not only by the exit environment but by a broader recognition that traditional realization timelines may be too short to capture full asset value. The discussion emphasized the concentrated nature of many CVs and the resulting dispersion in outcomes relative to primary funds, reinforcing the importance of underwriting discipline, especially in single-asset or less diversified structures.

On financing, panelists suggested that hybrid CV facilities are often the most common among subscription, NAV, and hybrid facilities, because they can better accommodate CV realities (anchor investors, shorter terms, and concentration). The panelists also noted an increasing pool of lenders willing to underwrite concentrated or single-asset risk supported by deeper diligence, investor letters, and tighter covenants. More broadly, panelists observed the convergence of GP-led and LP-led liquidity solutions, with overlap among CVs, CFO-type concepts, and rated note feeder ideas, and with financing decisions being made earlier in transaction planning with key LP engagement.

Lender Perspectives in Fund Finance: Beyond the Bank Lender

Non-bank providers emphasized their ability to deliver bespoke, solutions-oriented structures, including greater flexibility in security packages, covenants, cashflow sweeps, and repayment profiles. Several panelists noted that as products evolve, distinctions among subscription, NAV, and hybrid facilities can blur, particularly in underwriting approaches, while bank platforms often remain high-volume and more standardized.

The panelists highlighted the expanding role of ratings and insurance capital in unlocking liquidity and suggested that a ceiling on continued market growth may be GP education and awareness of available tools. Panelists also flagged organizational dynamics within banks, where product coverage can be fragmented across teams, as a potential friction point when sponsors want integrated solutions across a platform relationship. Lastly, the discussion also touched on jurisdictional regulatory regimes shaping market participation and partnership models between banks and private credit in certain countries.

Insurance in Fund Finance

Panelists described insurance capital as an increasingly important participant in fund finance, attracted by the asset class’s scalability and the ability to structure exposures to match longer-duration liabilities. Relative to banks, insurers can often offer longer tenors and more tailored structures, although they remain constrained by rating considerations and insurance regulatory frameworks.

Panelists also discussed continued innovation across CFOs, NAVs, and rated feeder structures, including debate over whether and when standardization may emerge. They noted that rated products and insurer participation are likely to continue expanding as insurers allocate more to private markets in pursuit of spread, and as structuring evolves to address regulatory and rating-agency considerations.

GP Perspectives

Panelists emphasized that relationship dynamics and cultural fit remain central in fund finance, both in lender relationships and in broader firm activity such as acquisitions. GPs value execution certainty and a lender’s ability to deliver across products and needs (i.e., not just facilities, but also hedging and broader relationship services). They also highlighted the importance of reducing process friction, with “too many emails” being cited as a practical pain point, underscoring that responsiveness and coordination across credit, legal, and commercial functions can be a competitive differentiator.

The panelists also reinforced that fund finance remains notable for the speed at which new products and trends are adopted, including GP-led financings and evolving liquidity solutions, especially in a market still working through longer hold periods and slower exits.

Final Thoughts

FFA’s 15th Annual Global Fund Finance Symposium reflected a market that is both maturing and rapidly evolving. While subscription facilities remain foundational, the continued growth of NAV, hybrid, and insurance-backed structures underscores the market’s expanding toolkit and the sophistication of both sponsors and lenders. Across regions, participants are adapting to differing regulatory environments, evolving capital sources, and increasing investor scrutiny, all while maintaining focus on execution certainty and partnership-driven solutions. As we move through 2026, themes of liquidity, innovation, and collaboration are poised to define the next phase of fund finance, with participants navigating a dynamic environment that rewards flexibility, discipline, and strategic alignment.