Fund finance has undergone a remarkable transformation in recent years, fueled by innovation, shifting market dynamics post-SVB’s collapse, and a new generation of GPs. From subscription lines to NAV lending, there is no shortage of success stories, but one recent deal at Piermont Bank highlights how this evolution is creating a tangible impact.
A first-time GP, an alum of a top-tier investment firm, came to market and debuted an oversubscribed first fund of $150 million, armed with a Piermont capital call facility from day one. It was a milestone moment for the GP and a proud validation of Piermont’s model: combining financial partnership with operational enablement.
For the growing body of fund clients like this first-time fund manager, Piermont Bank wasn’t just a lender. We are a strategic partner, providing high-touch service, customized solutions, and the speed and assurance needed to close deals fast. What truly sets us apart is our cloud-native, API-first platform, which supports the critical middle- and back-office operations that GPs rely on. This is what the future of fund finance looks like—and it’s already happening at Piermont.
Entering A New Chapter in Fund Finance
The success stories at Piermont Bank’s fund finance space reflect a broader shift in the market, especially following the collapse of Silicon Valley Bank and other legacy players, the fund finance landscape has been democratized. The space, once dominated by large institutions, is now welcoming new entrants, offering managers more choice, more flexibility, and a better client experience. Piermont Bank is proud to be leading this shift.
“But this trend is about more than filling a gap. It’s about reimaging the way fund finance should work, especially for smaller funds, first-time managers, and diverse GPs,” said Wendy Cai-Lee, Piermont Bank founder and CEO. “One of the most consistent pieces of feedback we receive is how much GPs value our role as a partner, not just a lender. That relationship piece is becoming more essential than ever.”
From the beginning, Piermont Bank recognized that many high-potential fund managers were being overlooked by legacy players. These emerging GPs didn’t need one-size-fits-all products. They needed institutions that understood their vision, moved fast, offered certainty, and added operational value.
Why Fund Managers Choose Piermont
In a market increasingly defined by precision and speed, fund managers choose Piermont not just because of what we offer, but how we deliver:
- Tailor-Made financing solutions: We customize subscription lines of credit and NAV loans that fit the unique structure of each fund. No templates, no compromises.
- High-touch, Relationship-Driven Service: Our bankers work hand-in-hand with GPs, offering responsive, advisory-driven support that legacy banks struggle to match. We take the friction out of banking so managers can stay focused on building value.
- Speed and agility: In the world of deal-making, timing is everything. Piermont makes it a priority to act quickly and decisively to give fund managers the assurance they need to move at the speed of the market.
- Cloud-native, API-first Infrastructure: Unlike legacy banks, Piermont is fully digital and cloud-native, giving funds the operational efficiency they need. Especially for funds with lean operations, this delivers a clear edge in efficiency and automation.
- A One-stop Partner: From capital call lines to high-yield operating accounts, Piermont’s legacy-tech free banking core serves as a virtual treasury for our fund clients, helping them manage liquidity and maximize returns on idle cash.
Democratizing Fund Finance for Underserved GPs
As a bank founded by a woman entrepreneur, Piermont has always been committed to inclusive banking. That mission extends to our fund finance clients, particularly women- and minority-led funds, which remain vastly underrepresented and underfunded in the industry.
The data is clear:
- 98% of U.S. VC assets under management are still controlled by white men.
- 77% of VC dollars go to white male founders.
- Just 1% of VC capital goes to Black founders, 1.5% to Latine founders, and 1.9% to women-owned startups.
- Yet nearly 40% of U.S. businesses today are women-owned—a figure that grew by 14% from 2019 to 2023.
This funding gap mirrors the lack of diversity among fund managers. But the data also shows promise: VC firms with at least one female partner are 2.3x more likely to invest in female founders.
We believe that the democratization of fund finance offers a critical opportunity to change this trajectory. By expanding access to flexible capital, supportive infrastructure, and a genuine banking relationship, we can help close the gap and unlock innovation in underserved markets.
Built to Serve the Future of Fund Finance
Piermont Bank was built for the innovators—the founders rewriting the rules and the investors who believe in them. Our fund finance platform is a natural extension of that mission.
As the market continues to evolve, Piermont is uniquely positioned to serve the next generation of GPs:
- First-time fund managers with deep experience and exceptional proven track records
- Small to mid-sized funds fueling the next wave of innovation
- Women and minority-led funds reshaping the investment landscape
If you’re a GP looking for a banking partner that moves with purpose, builds with agility, and understands what it means to grow something new- we’d love to hear from you, [email protected]