Värde Partners has launched a new fund finance platform backed by a $300 million anchor investment from Canada Pension Plan Investment Board (CPPIB), executed through its CPPIB Credit Investments subsidiary. The additional capital expands Värde’s ability to originate and scale fund finance solutions amid accelerating demand for subline facilities. 

The platform has already secured a forward flow agreement with a major global bank to support its subscription line origination pipeline, underscoring growing institutional appetite to access private capital markets through fund-level leverage. 

“The emergence of non-traditional long-term capital providers into the over $1 trillion subline lending market is a transformative development in a space that has not had a significant capital markets solution which we believe ultimately benefits underlying borrowers,” said Missy Dolski, global head of fund finance and capital markets at Värde.   

Fund finance has become a key growth vertical within asset-based lending, as traditional bank providers face regulatory constraints. The entry of non-bank capital into the market reflects a broader evolution in fund-level financing solutions.  

“As demand for fund financing grows, we view subline lending markets as a compelling opportunity for investors like CPPIB with long-term capital available for deployment,” added David Colla, managing director and head of Capital Solutions Group at CPPIB. 

Credit now represents 11% of CPPIB’s total portfolio, with the allocation generating a 16.5% return for the fiscal year, according to its recently published annual report. Since 2008, Värde has deployed $13 billion across asset-based finance strategies.