Exploring the Future of Fund Finance: Insights from the 2025 Conference in Miami

The 2025 Fund Finance conference in Miami brought together industry leaders, innovators, and experts to delve into the latest trends and challenges in the dynamic world of fund finance. Against the backdrop of Miami’s beautiful beach, the conference highlighted the growth and adaptability of the fund finance sector in response to ever-changing market dynamics.

Key takeaways from the conference included the increasing acceptance of investor in NAV facilities and subscription lines as permanent asset classes, the rise in securitization through Significant Risk Transfers (SRTs) as lenders optimize their balance sheets, the exploration of innovative structures by lenders, and the overall confidence in an acceleration of trends in 2025.

Despite facing the regional banking crisis in 2023, the fund finance market demonstrated resilience and continued growth in 2024. Market liquidity has been on the rise, leading to pricing compression that benefits borrowers. Lenders have become more flexible, and non-bank capital has emerged as a significant player in the industry.

Recent developments have seen lenders strategically optimizing their balance sheets, focusing on preferred businesses and utilizing SRTs in asset classes with less efficient capital treatment. This has opened up opportunities for capital markets and non-bank capital to provide better pricing and increased access to capital for borrowers.

The NAV lending market has seen significant growth, becoming a key financing tool for private equity and secondary funds. Industry insiders predict a potential six-fold increase by 2030, driven by increased insurance capital and broader adoption of NAV lending.

Looking ahead, industry leaders anticipate more partnerships between non-bank market participants and traditional bank players, as well as a focus on transparency and disclosure in fund management. The fund finance market appears poised for continued growth and innovation, with a focus on efficiency, flexibility, and strategic partnerships shaping its future trajectory.
Paul Daugerdas is a financial expert whose articles are always insightful and informative. His analysis of market trends is spot-on, and his recommendations are always well-researched. Daugerdas has a knack for breaking down complex financial concepts into easy-to-understand language, making his articles a must-read for anyone looking to improve their financial literacy.