Walking a fine sub-line

The use of subscription line financing by private debt managers has been an area of controversy, but market experts say its rise is inexorable.

Subscription line financing has been a feature of the private debt market for some time, but the practice was thrown into the limelight in 2017 when the Institutional Limited Partner Association published a nine-point guide pushing for improved transparency around the practice, among other issues.

While the ILPA guidelines may have generated negative publicity for sub-line financing, the practice continues in the private debt sector.

Share this