Interested in training for your team? Click here to learn more

Structuring Credit Facilities for Private Equity Funds: Subscription, NAV, and Hybrid Loans

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 Thursday, July 13, 2023

Recorded event now available

or call 1-800-926-7926

This CLE course will provide finance counsel with the tools to structure credit facilities for private equity funds, including subscription and net asset value (NAV) based facilities and hybrids that combine aspects of both. The panel will contrast the documentation and collateral for subscription vs. NAV loans and review additional issues to address when underwriting and documenting a hybrid transaction.


Private equity funds often use subscription-backed credit facilities as a bridge to capital calls or to other permanent or asset-level financing. As funds mature beyond their investment or commitment periods, they then seek NAV credit facilities with availability based on the underlying portfolio investments of the fund.

These two phases of financing have historically been distinct transactions, but borrowers and lenders are now exploring hybrid facilities which provide lenders with recourse to both uncalled capital commitments (the typical collateral under subscription facilities) and underlying investment assets (the traditional credit support under NAV facilities). Counsel must have a thorough understanding of subscription and NAV credit facilities, and how each may figure into a hybrid structure.

Hybrid facility lenders need to underwrite the investors providing collateral support and a pool of known and potentially unknown portfolio assets. The collateral package for the hybrid facility might include pledges of a general partner's rights to unfunded capital commitments; deposit accounts into which the fund's investors are required to fund their contributions; equity interests in the holding companies through which the fund holds its underlying investments; and equity interests relating to the underlying investments.

Listen as our authoritative panel discusses the different objectives of subscription and NAV credit facilities and the nuances of combining the two into a hybrid credit facility. The panel will also address UCC perfection issues concerning the various interests pledged.



  1. Financing lifecycle of a private equity fund
  2. Subscription facilities
  3. NAV facilities
  4. Hybrid facilities
  5. Types of collateral: UCC perfection


The panel will review these and other key issues:

  • What is the collateral for subscription facilities, and when are they most useful in the life of the fund?
  • When should NAV facilities be created, and how are adjustments made for underlying assets of a fund?
  • How should a hybrid facility be structured to address both subscription and NAV underwriting?
  • What are the UCC considerations for each type of collateral?


Go, Flora
Flora Go

Fried Frank Harris Shriver & Jacobson

Ms. Go represents investment management firms, investment banks, private equity sponsors and other financial...  |  Read More

Martinez, Javier
Javier E. Martinez

Haynes Boone

Mr. Martinez’ primary focus is in representing lenders and some borrowers in secured transactions at all stages...  |  Read More

Smith, Courtney D.E.
Courtney D.E. Smith

Haynes Boone

Ms. Smith represents borrowers and lenders in a variety of commercial and corporate finance transactions, including...  |  Read More

Sysel, Jan
Jan Sysel

Fried Frank Harris Shriver & Jacobson

Mr. Sysel represents sponsors, borrowers, arrangers and lenders on a wide variety of financing transactions primarily...  |  Read More

Access Anytime, Anywhere

Strafford will process CLE credit for one person on each recording. All formats include course handouts.

To find out which recorded format will provide the best CLE option, select your state:

CLE On-Demand Video