Overview
Fund-level financing is the connective tissue between LP commitments, GP economics, and the property-level capital stack. This hub aggregates the fund-finance pillar, the subscription line and NAV facility sizing calculator, sibling Q&As, and the lender-type glossary.
Why this matters
A subscription line that runs aggressively boosts headline IRR by deferring the LP capital-call clock, but raises ILPA-aligned LP concerns and creates audit-cycle questions. NAV facilities and GP-commitment loans are increasingly used to fund continuation vehicles and platform expansion.
Fund-level capacity is also a gating factor on property-level execution. Sponsors who maintain a healthy subscription line have more bid certainty in competitive auctions; sponsors without one are dependent on the LP capital-call cycle.
How to use this hub
Start with the pillar for the comparison framework. Use the subscription line and NAV facility sizing calculator to compute borrowing-base capacity (LP commitments × tier advance rates) for the sub line and the LTV-driven advance amount (eligible asset NAV × LTV cap) for the NAV facility. Drop into the Q&A library for facility mechanics and the glossary for fund-finance terminology.
Pillar guide
Sponsor-side tool
Sibling Q&As
How does a subscription line (capital call facility) work for a CRE fund?
A subscription line is a revolving credit facility secured by the fund's right to call uncalled LP commitments.
What is a NAV facility and how does it work for a CRE fund?
A NAV facility is a credit facility secured by the fund's portfolio at net asset value (NAV).
How is a GP-led secondary or continuation vehicle financed?
A continuation vehicle is a new fund that acquires one or more assets from an existing fund nearing end-of-life. The CV is financed with new LP equity.
How does management-company financing (ManCo financing) work for a CRE sponsor?
Management company financing provides credit at the GP entity level, often secured by management-fee streams and carried-interest distributions.
Subscription line vs. property-level bridge loan: when does each fit?
Subscription lines bridge LP capital calls at the fund level (collateral: uncalled LP commitments).
Bank vs. private credit lender for fund finance, what's the difference?
Banks dominate the subscription-line market with the deepest capacity and tightest pricing; private credit lenders compete in NAV, GP-credit, and complex.
How does subscription line use affect a CRE fund's IRR?
Subscription line use defers LP capital calls and shortens the LP's effective hold period, which mechanically increases reported IRR.
Glossary
Subscription line
NAV facility
Continuation vehicle
GP commitment
ManCo financing
Fund finance borrowing base
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