Fund Finance

Unique access to emerging value opportunities

Driven by the exponential growth of private market funds, especially in the last decade, a scalable investment opportunity has developed for fund finance. Fund finance to date has been largely dominated by bank financing but institutional investors are increasingly discovering attractive investment opportunities offering relative value and diversification to alternative risk drivers.

What is Fund Finance?

 
The market for fund finance is growing rapidly. In this video, Bas Kragten, Head of Fund finance & Infrastructure, introduces Fund Finance, focusing on Capital Call Financing and NAV Financing - the two market segments we are active in. Bas discusses where the premium over liquids comes from but also what the main risks are in relation to this type of financing.  

 

Two types of fund finance:
Why invest?
Why Aegon AM?
Overview of our key Fund Finance strategies

At Aegon Asset Management we offer two distinct Fund Finance strategies, each at different stages of the PE fund’s life cycle. Past performance does not predict future returns.

 

 

Capital Call Finance

NAV Finance

Target Return

3m Euribor + 175 - 250bps

3m Euribor + 225 - 400bps (up to 9% yield)

Credit quality

AA / A

A / BBB

Weighted average life

Majority of assets have drawn maturities between 3-12 months  

 

Expected WAL: 3 - 5 years

Target Structure

  • Co investment structures with specialized banks offering access to deal pipeline.

  • Loan by loan underwriting while benefiting from strong ‘alignment of interest’ with bank lenders.

  • Drawn facilities.

  • Co investment structures with specialized banks offering access to deal pipeline.

  • Loan by loan underwriting while benefiting from strong ‘alignment of interest’ with bank lenders.

  • Term Loan facilities.

Loan Purpose

Working capital to prefund LP commitment drawings

Add on acquisitions (PE Funds) in harvesting phase & Limited Partner distributions

Source: Aegon AM. As of March 2025.