Over recent years there has been significant growth and development in the fund finance industry which has expanded over the last decade into a global market now worth more than US$600bn according to the asset manager abrdn. As the market has continue to mature the variety of tools available to investors (which include private equity private credit and venture capital) to fund their operations has expanded considerably beyond the traditional subscription facility to encompass many more types of fund financing. One such innovation has been the introduction and adoption of sustainable finance either by the way of use of proceeds facilities (green loans) or sustainability-linked loan facilities.
In light of the increased use of ESG-linked financing in the fund finance market on 5 March 2024 the Loan Market Association Asia Pacific Loan Market Association Loan Syndications and Trading Association and the Fund Finance...