Institutional investors have become a valued source of additional capital and catalyst for innovation in the fund finance market. However, their participation as lenders impact how transactions are structured and documented.

In our latest insights paper, Shelley Morrison (Head of Fund Finance at Aberdeen) and Kam Hessling (Managing Director at the LMA) explore:

• The participation of institutional lenders in fund finance
• Practical structuring considerations, including operations, loan structure and funding timescales
• Investment entry points and diligence requirements
• The role of ratings
• Withholding tax and gross- up obligations
• Transferability provisions
• Future outlook

On 17 October 2025, we responded to the House of Lords Financial Services Regulation Committee’s inquiry on the growth of private markets in the UK.

Our response outlines how private credit has become a vital source of long-term financing for the real economy, complementing and, in some cases, substituting traditional bank lending. It details the increasing interconnections between banks and private credit funds - such as co-investment in leveraged loans, fund finance, and synthetic risk transfer - and discusses the implications for financial stability and access to credit. We also emphasise the importance of maintaining an internationally competitive and proportionate regulatory regime, ensuring that the benefits of private credit growth are recognised while safeguarding the resilience of the UK’s financial sector. 

Together with Bank Policy Institute (BPI), the Swiss Finance Council, UK Finance, the UK Association of Foreign Banks (AFB), the Bankers Association for Finance and Trade (BAFT), and the Japanese Bankers Association (JBA), the LMA has published a position paper on EU Member States’ implementation of the branch requirement under CRDVI. This paper is intended to:

• highlight the approach that we believe best aligns national transposition with the policy intent behind CRD VI; and
• identify areas where certain transposition proposals or interpretations to date appear to have inadvertently diverged from the Level 1 text or policy intent.