Dee Dee Sklar is Vice Chair of Subscription Finance, Asset-Backed Finance, Wells Fargo Securities. ABF provides direct structured lending as well as the underwriting and distribution of asset-backed securities for more than 550 clients, and a risk portfolio across consumer, commercial, residential, corporate debt finance and subscription finance. Sklar recently discussed the subscription-finance business with Loretta Clodfelter, editor of Institutional Real Estate Americas.

What is the subscription-finance business all about? What is the origin of subscription lending? And what were the key events that led to the evolution of subscription finance as we know it today?

Subscription lines are revolving lines of credit secured by the uncalled capital commitments of the investors in a private equity fund. The lines cover an array of fund-level financing needs, namely acquiring investments, bridging capital calls,