Unlocking liquidity: The evolution of structured financing in private markets

The private markets are undergoing a fundamental shift in how liquidity is managed, driven by higher interest rates, slower exit cycles, and growing demand for capital flexibility. In this episode of JPMorgan's Making Sense, John Neubauer, Global Head of Structured Equities Financing, reveals how structured financing is no longer just about return enhancement—it's now a core tool for managing liquidity across fund lifecycles. From subscription lines evolving into long-term funding sources for continuation vehicles and co-investment funds, to the rise of NAV lending that unlocks value in unrealized equity stakes, the financing toolkit is becoming more sophisticated and integrated. Neubauer highlights a growing convergence between private equity and hedge fund strategies, as both now use fund-level financing to match investment maturities and finance hard-to-secure assets. The future, he argues, lies in a unified, multi-layered approach—balancing subscription lines, NAV loans, and asset-level financing—driven not by market cycles but by the relentless expansion of private capital itself.