Demand for general partner (GP) level payment is growing, although access to finance is growing disproportionately, leaving those with the greatest need with a reduced set of options, according to new data.
The latest Borrower Letter Report published by Corpay Private Markets, drawing on Alpha Match, Corpay’s lending intelligence platform, found that the number of GP agency lenders it tracks will more than double from 2024, from 51 to 125.
However, borrower appetite remains focused on established managers with “scale, diversified platforms, and predictable management income”.
Read more: Private debt deals reach new record in 2025 after ‘busiest quarter’ in H2
Corpay Private Markets said this means managers who are most in need of GP funding, such as emerging managers, spin-outs, and smaller platforms navigating longer fundraising cycles and increased GP commitment requirements, “face a smaller lender world”.
An analysis of the fund’s lending market found that, while 71 per cent of lenders are willing to consider GP institutions for start-up funding, this drops to 46 per cent when filtered to lenders working in the £1m to £5m ticket range, which is where budding managers tend to live.
Corpay Private Markets said that, when the financing is strong, “operations continue smoothly”, but when the installation is “small”, usually happens to the managers of the previous stage, the institutions need “more planning, attract strong agreements, or fail to remove all debt restrictions”.
The desire to borrow was found to be concentrated in North America (80 percent), followed by Europe (75 percent), and the UK and Ireland (69 percent), with a lower appetite in mature markets, such as APAC (17 percent).
Read more: The UK government has appealed to support the private sector’s contribution to zero change
“What our data shows is that the supply side has indeed grown, but where that money is spent tells a different story,” said Edward Beecham, head of originations at Alpha Fund Finance, part of Corpay Private Markets. “Access remains closely linked to scale and record, which creates real challenges for managers who need this money most.”
Megan Livingstone, senior architect at Corpay Private Markets, explained that there is a “gap” between what managers expect their collateral to get for the size of the facility, and what lenders are willing to underwrite.
“Managements tend to emphasize the importance of the title of GP benefits or the assumed distribution that it carries. Lenders, however, remain focused on the predictability and strength of free cash flow. Closing that perception gap is often the basis of getting the institution across the line,” he added.
The Alpha Match platform tracks the lending appetite of over 400 active fund lenders across all lines of subscriptions, net asset value services, GP financing, and other fund finance products.
Read more: Peachtree Group buys more than $330m of loans from ‘risk-on’ banks and lenders
