Capital commitment-backed subscription line credit facilities

Closed-end private investment funds are increasingly using subscription-secured credit facilities as a relatively inexpensive means to quickly obtain capital for investment opportunities and working capital needs.  A subscription-secured credit facility (also called a “subscription line”) is a revolving line of credit that is provided by one or more lenders to a private investment fund and collateralized by a pledge of the right to call and receive capital contributions from the fund’s investors.