General partner (GP) financing involves financing at the fund sponsor level, as opposed to fund-level subscription lines of credit or net asset value facilities, explained Proskauer partner Philip A. Kaminski at a Practicising Law Institute (PLI) program on fund finance. The GP finance market has evolved significantly over the past decade. “Lenders have realized that GP cashflows can be modeled and underwritten like any other asset,” he observed. They are building lending strategies tied to those fee streams. The PLI program covered the fundamentals of GP financing, including deal structures and terms; lender due diligence; default triggers and remedies; and how GP financing differs from other fund finance options. Matthew K. Kerfoot, partner at Proskauer, monitored the discussion, which also featured Adam Dobson, partner at Ropes & Gray; and Jocelyn A. Hirsch, P.C., partner at Kirkland & Ellis. This article synthesizes their insights. See our two-part series on trends in use of subscription credit facilities: “Advantages for PE Investors and Sponsors Have Led to Adoption by Some Hedge Funds and Credit Funds” (Jan. 24, 2019); and “Structuring Considerations Negotiated With Lenders and Important LPA and Side Letter Provisions” (Feb. 7, 2019).