Fund Finance Pricing Is Splitting as the Lender Base Diversifies, Corpay Private Markets Report Finds

Fifth edition of Lender Book Report highlights non-bank lenders are pricing complex NAV facilities at a growing premium, despite headline price compression.

LONDON--(BUSINESS WIRE)--Corpay Private Markets today publishes the fifth edition of its Lender Book Report, ‘The Yield Hunters’, which finds that a rapid diversification of the fund finance lender base has opened up a divergence in pricing. Subscription line margins have tightened broadly as competition has intensified, but NAV facility pricing has forked: banks are continuing to compress, while non-bank lenders are pricing at a widening premium.

The report draws on Alpha Match, Corpay Private Markets’ proprietary lender intelligence platform. Since Alpha Match launched in 2023, the number of lenders it tracks has grown by around two thirds. Alternative credit providers have grown fastest and now account for roughly three in ten tracked lenders, up from around a quarter three years ago.

NAV facilities: banks and non-banks moving in opposite directions

Between February 2025 and August 2026, average bank NAV margins compressed from 447 to 435 basis points. Average non-bank NAV margins moved the other way, widening from 756 to 794 basis points, with the increase seen consistently across the pricing range rather than at one extreme.

This reflects deals in Alpha Match’s own tracked flow, which skews towards mid-market and more complex NAV mandates rather than the largest, most competitive transactions. It is evidence that non-bank lenders can price complexity at a premium in that part of the market, not a claim that non-bank NAV pricing is rising across the board. Market feedback suggests that, on the very largest mandates, alternative lenders are sharpening pricing to compete directly with banks.

Falling interest rates are likely one part of the explanation. US rates have fallen from a peak of 5.50% in July 2023, before ticking up more recently, while UK rates have fallen from 5.25% in August 2023 to 3.75% in December 2025, where they have since held. For lenders with absolute return targets, a lower base rate reduces what a spread over base rate can deliver alone, which may be contributing to richer margins from non-bank lenders.

The report also sets out a framework of deal characteristics, spanning asset class, LP base, structure, manager profile and lender type, that consistently appear where pricing holds or improves against the broader compression trend. It illustrates each with anonymised, real transaction examples across both subscription lines and NAV facilities.

Ed Beecham, Head of Origination, Fund Finance at Corpay Private Markets, said: “The headline story of fund finance in 2026 is price compression. A more diverse, more crowded lender base has pushed pricing down across the board, especially for subscription lines; more lenders competing for the same deals has meant tighter margins for banks and non-banks alike.

"But the same is not true for NAV facilities. As non-bank lenders have entered that market in growing numbers, rather than competing on pricing, they have moved into underserved pockets higher up the risk curve as a means of widening margins.”

The Lender Book Report is available here.

Notes to editors

About the Lender Book Report:

The Lender Book Report is published twice yearly by Corpay Private Markets. It is one of the only reports in the fund finance market based on proprietary transaction data and live lender appetite, rather than survey-based sentiment research. This latest report is the fifth edition in the series.

About Corpay Private Markets:

Corpay Private Markets (formerly Alpha Private Markets), provides a powerful alternative to traditional banking – one that is designed specifically to handle the complexity of private market companies. Combining dedicated teams with purpose-built technologies, we offer a suite of cash and risk management solutions, all seamlessly managed in one place. This includes bank accounts, debt-sourcing, deposit solutions, and multi-bank connectivity, alongside expert advice on managing financial market risks. Corpay Private Markets is part of Corpay, Inc.

Corpay Fund Finance is our specialist fund finance advisory and digital brokerage. Its Alpha Match platform tracks the lending appetite of 500+ active fund finance lenders across subscription lines, NAV facilities, GP financing, and other fund finance products, enabling managers and advisers to efficiently identify the right capital partner for their requirements.

About Corpay:

Corpay (NYSE: CPAY), the Global Spend Management Company, is an S&P 500 company with three primary B2B solution sets. Spend Management, provides corporate and virtual card programs and automates procure-to-pay. Cross-Border helps businesses manage foreign-currency exposure and provides global multi-currency account solutions. Vehicle Solutions, controls fuel, tolls, parking and related vehicle spend. With Corpay, the more a business controls, the less it spends. To learn more, visit www.corpay.com.