Where does the future of Fund Finance lie in a post-COVID world?

brickfieldBy brickfield05/08/20203 Minutes
Brickfield Fund Finance Recruitment Insights

We mentioned in our last article that European and British Financial markets have expressly focussed on short term continuity and hiring ahead of a rebound as the tonic for COVID’s ailments.

But as coronavirus spreads, and as entire governments enact protective measures beyond precedent, how specifically are US, EU and Asian Fund Financiers adapting to the threat of further outbreak, and how are recruiters adapting to the change?

Ultimately, the Fund Finance industry sits at the cusp between futures and stability, and uniquely it’s the flexibility offered via bespoke funding structures that will be a boon to some, if not most, investment vehicles.

But change, we think, will be more subtle than overt.

  • We are seeing an increase in conversation around NAV facilities and the opportunity for more flexible refinancing, especially amongst non-bank lenders,
  • Rather than defaults and panic, what we’ve noticed is a much more managed, calm and considered portfolio adjustments, and a much more overt understanding of long term changes and how to mitigate long term harm,
  • Like lenders, Brickfield have had to react to market changes, be that a rise in hiring (albeit cautionary), or churn in some firms, and we are far more aware of some uneasiness in pushing for market entry in a still growing market.

What we’re seeing at Brickfield are clients overwhelmingly looking for Fund Finance professionals with a broad range of industry knowledge, candidates who understand traditional subscription line facilities and NAV and Hybrid Facilities. In this uncertain time, we’re finding that growth hinges on being able to prepare for every eventuality. Candidates who understand the full Fund Finance lifecycle, from fund raising through to maturity, are in higher demand.