Alternative Investment

Bridge Loans: Answering Your Most Common Questions

Fund managers may want to consider a Subscription Line while they raise capital for their fund as the line can assist in smoother efficiencies. Subscription Lines, also known as Bridge Loans or Capital Call Lines, are short-term loans that can be used while funds are waiting for their Limited Partners or investors to fund their capital commitment.  This provides immediate cash flow to the fund managers and can be used for various purposes. 

Richey May has put together a guide to address frequently asked questions around why and how fund managers may want to attain a Bridge Loan and what they will need to consider if they choose to secure one. 

Our guide provides answers to your most common questions including: 

• Who Can Secure a Subscription Line?  
• When would a fund use a Subscription Line?  
• What do banks look for in the approval process?  
• What are the typical terms of a Subscription Line?   
• What are the tax implications?  

If you have questions or need an introduction to obtain a bridge loan, please contact Steve Vlasak.