For GPs · Subscription financing
Subscription financing with a broader borrowing base.
Conventional subscription lenders restrict borrowing against individual and family office commitments. We underwrite those commitments, so more of your fund’s committed capital supports its facility.
One fund, two borrowing bases
A subscription facility is sized against the commitments the lender counts. Conventional lenders count institutional commitments and discount or exclude much of the rest. We look at the same LP base and count more of it.
Illustration, without amounts. The same fund’s LP base of institutional, family office and individual LPs is shown twice. Under conventional subscription financing, institutional commitments count toward the borrowing base, family office commitments count in part and individual commitments are largely discounted or excluded. Under Croton, more of the family office and individual commitments count, so the borrowing base is larger. Not every commitment counts under either approach.
Illustrative proportions, not advance rates. Eligibility and capacity depend on underwriting.
Who we work with
We provide subscription financing backed by uncalled LP commitments to funds that conventional borrowing bases underserve.
- 01Emerging managers
- 02First-time funds
- 03Smaller funds
- 04Funds with substantial HNW and family office LP bases
- 05Established managers whose borrowing bases exclude or heavily discount part of their commitments
How it works
01
Understand the fund
We review the fund’s structure, investor composition, uncalled commitments and financing needs.
02
Evaluate the borrowing base
We assess which LP commitments support financing, including individual and family office commitments.
03
Structure the facility
We structure a facility around the fund, provided by Croton directly or together with financing partners.
04
Fund
Once underwriting and documentation are complete, the facility is available to draw.
Benefits for GPs
Access for underserved funds
Subscription financing for funds that traditional lenders find hard to serve because of their size, track record or LP base.
Every LP considered
Individual and family office commitments are underwritten on their merits, not discounted by category.
A broader borrowing base
More of the fund’s commitments count toward the facility, subject to underwriting.
Built around the fund
Facilities fitted to the fund, its documents and the composition of its LP base.
Questions GPs ask
We consider commitments from institutional, family office and individual LPs. Whether a commitment counts toward the borrowing base, and to what extent, depends on underwriting of the fund, its documents and its LPs.
No. We work with funds whether or not they already have a facility.
Croton provides facilities directly or together with financing partners, depending on the fund and the size of the facility.
Emerging and first-time managers, smaller funds, funds with substantial individual and family office LP bases, and established managers whose conventional borrowing bases exclude or heavily discount part of their commitments.
The fund’s structure and governing documents, its investor composition, its uncalled commitments and how it uses the facility.
For each fund, after underwriting, based on its LP base and the structure of the facility.
Financing that counts more of your LP base.
Tell us about your fund, its LP base and its financing needs.