Värde Partners, a global leader in alternative investments specializing in credit and credit-related assets, has announced the launch of its new fund finance platform. This initiative marks a significant expansion of Värde’s asset-based finance strategy, designed to meet the growing demand for subscription lines (sublines) and other fund finance-related products.
The platform, backed by $300 million of strategic equity capital from the Canada Pension Plan Investment Board (CPP Investments) through subsidiaries of CPPIB Credit Investments Inc., aims to support bank origination through natural distribution channels, in addition to providing structured financing solutions to borrowers. This approach will potentially increase lending capacity in the market.
Brad Bauer, Managing Partner and CEO of Värde, highlighted the collaborative effort with longstanding partners in developing this platform. He emphasized that the launch will enhance Värde’s relationships with bank partners and provide exposure to attractive investment opportunities.
The fund finance sector is witnessing a surge in demand for products, according to Missy Dolski, Global Head of Fund Finance and Capital Markets at Värde. She noted the scalability of opportunities as private capital grows, and the entry of non-traditional long-term capital providers into the over $1 trillion subline lending market is seen as transformative. This development is expected to ultimately benefit underlying borrowers.
David Colla, Managing Director and Head of the Capital Solutions Group at CPP Investments, described the subline lending market as a compelling opportunity for investors with long-term capital. He views this transaction as a strategic step in building a robust partnership with Värde, which is expected to generate attractive risk-adjusted returns for CPP contributors and beneficiaries.
Värde Partners brings over 30 years of experience in private credit markets, with a history of originating bespoke financing solutions through contractual cash flow lending and forward flow financing. The firm is also experienced in significant risk transfer (SRT) transactions and other private capital solutions in partnership with banks. Since 2008, Värde has deployed $13 billion through its asset-based finance strategy.
About Värde Partners: Founded in 1993, Värde Partners is a global investment firm specializing in credit and credit-related assets. The firm has invested more than $100 billion across various credit qualities and currently manages $17 billion in assets. With teams and partnerships across North America, Europe, and Asia Pacific, Värde invests in both private and public markets, focusing on real estate, asset-based finance, and corporate credit.
About CPP Investments: The Canada Pension Plan Investment Board is a professional management organization responsible for managing the Fund in the interest of over 22 million contributors and beneficiaries of the Canada Pension Plan. With a diverse portfolio of assets, CPP Investments operates globally, headquartered in Toronto with offices in major cities worldwide. As of December 31, 2024, the Fund totaled C$699.6 billion.
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Note: This article is inspired by content from https://www.globenewswire.com/news-release/2025/06/17/3100661/0/en/V%C3%A4rde-Launches-Fund-Finance-Platform.html. It has been rephrased for originality. Images are credited to the original source.