The volume of traditional PE fund subscription credit facilities will likely maintain its momentum with the trend of new entrants to the market on both the borrower and lender sides continuing through 2022. Additionally, the growth of US$5 billion+ super funds should lead to an increase in popularity for umbrella facilities which provide cost and timing efficiencies for large sponsor groups. We would also expect the marked increase in the use of asset-based or SPV financings to continue due to the additional protections they provide to lenders and the associated benefits to pricing and the borrowing base. These financings typically feature an SPV borrower structured as 'bankruptcy remote'. Finally, ESG matters continue to be prominent in the space and we are likely to see a number of social and environmental focused ESG facilities coming to the fore in the coming months.
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