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Debt Finance Options for Real Estate Funds: Subscription, NAV, and Hybrid Facilities; Partner Lines of Credit

Recording of a 90-minute premium CLE video webinar with Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Conducted on Tuesday, May 25, 2021

Recorded event now available

or call 1-800-926-7926

This CLE course will examine debt financing options available to real estate investment funds, common structures and terms for these fund financing products, and the advantages and disadvantages of each. The panel will also discuss the relationship of fund finance to mortgage debt at the property level.


The COVID-19 pandemic has had a severe negative impact on the commercial real estate market, presenting an opportunity for private real estate investment funds to invest in distressed real estate assets. For real estate funds, third-party debt financing can provide capital to take advantage of these investment opportunities, meet financing needs and achieve other objectives.

Fund financing products can take several forms, including: subscription credit facilities secured by the capital commitments of a fund’s investors; management fee lines of credit secured by the fees the fund manager receives for managing the fund’s investments; partner loan programs offered to fund investors or the general partner; net asset value (NAV) credit facilities secured by the fund’s investment portfolio; or hybrid credit facilities combining certain aspects of subscription and NAV credit facilities.

Each fund financing product has unique structuring attributes, and may be most appropriate depending on where the fund is in its lifecycle and the desired use of the financing proceeds.

Listen as our authoritative panel discusses various finance alternatives available to real estate funds, common structures and terms, and the features, advantages, and disadvantages of each.



  1. Market Overview: real estate funds and opportunistic investing
  2. Common fund financing products and structures and terms, including:
    1. Subscription credit facilities
    2. Management fee lines of credit
    3. Partner lines of credit
    4. NAV credit facilities
    5. Hybrid credit facilities
  3. Considerations: including the interaction between mortgages and fund financing


The panel will review these and other relevant issues:

  • What are some of the fund financing options available to real estate investment funds, and how do they interact with property-level (mortgage) debt?
  • How are fund financings structured and what are some of the benefits to real estate investment funds that utilize fund financing?


Fargotstein, Max
Max W. Fargotstein

Duane Morris

Mr. Fargotstein represents both lenders and borrowers in a wide variety of debt financing transactions including...  |  Read More

Kaup, Anastasia
Anastasia N. Kaup

Duane Morris

Ms. Kaup has represented asset managers, investment funds, sponsors, financial institutions, corporate clients and...  |  Read More

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