Varde Makes Push to Scoop Up Banks’ Loans to Private Funds

Alternative credit investment firm Varde Partners has begun scooping up a type of loan that private market fund managers use to help pay for deals — snatching up debt that banks are increasingly looking to offload because of regulatory constraints.

Varde is launching a new platform to buy so-called subscription lines, according to a statement released Tuesday. They’re essentially credit lines for private equity and other private market funds that allow managers to rapidly deploy capital when they spot an investment opportunity, rather than asking for their investors to hand over cash.