Fund finance is facing heightened regulatory scrutiny in both the US and UK. In the US, the SEC is focusing on NAV loans and subscription lines due to potential conflicts of interest and valuation concerns. Similarly, the UK’s PRA has raised alarms about banks’ exposure to private equity financing. The EU is also examining the impact of Basel IV regulations on subscription facilities. LPs are increasingly cautious about additional debt layers, leading to stricter terms in limited partnership agreements. As NAV lending grows, expectations for transparency in agreements are rising, reflecting the evolving nature of fund finance in a changing regulatory landscape.