What is Equity Bridge Financing in Private Equity?
July 4, 2025
Also known as credit lines, subscription line facilities,
or capital call facilities, these financing instruments
are short-term loans (usually less than 365 days)
that are provided to private markets funds and are
backed by the commitments of fund investors. Cap-
ital calls can then be delayed, along with the start of
the computation of the IRR associated with them.
Distributions can also be anticipated, thus affecting
the computation of the IRR.