WHAT WE DO

Fund Financing

Given the breadth and scale of MUFG Investor Services’ banking operations, we offer bespoke financing for your investment activities, such as asset-based and capital call facilities for FoHFs and closed-ended funds.
The benefits of working together with MUFG Investor Services on your fund financing needs include competitive pricing, integrated collateral monitoring, efficient use of capital for FX hedging, and a captive balance sheet.

SERVICES OFFERED

        • Committed Facilities
          • NAV / asset backed facilities generally
            • Bridging capital calls into closed-ended investee funds
            • Bridging FoF subscriptions/redemptions
            • Synthetic margin for FX hedging
              facilities
            • Settling FX trades
          • Up to 35% Loan-to-Value of
            eligible collateral based on credit review
          • Range of durations typically with
            an auto renewal feature
        • Drawdowns
          • Payable on a T+2 basis, however
            additional flexibility available
        • Repayments
          • No repayment maturity clause (i.e.,
            break funding costs) Flexible
        • Senior, secured revolving committed credit
          facilities “Purpose driven” facilities generally to be used for:

          • Bridging investor drawdowns and
            portfolio investments
          • Alleviation of cash-flow burden on
            investors
          • Posting margin for FX hedging
        • Facility borrowings sized against an
          agreed portion of the uncalled committed
          capital
        • Flexible duration – typically 2 year with
          extension features
        • Borrowing Base
          • Generally, consists of rated included,
            non-rated included and designated investors
          • Can finance single LP names with credit approval
          • Easy to understand model driving applicable advance rates
        • Drawdowns / Repayments:
          • Generally payable on a T+2 basis (USD)
          • Major alternative currencies
            available
          • Flexible repayment clauses

        1 MUFG Alternative Fund Services (Cayman) Limited as of June 30, 2021