PE Push to Borrow Against Fund Assets Rankles Some Investors

Private equity firms are attempting to get blanket permission to borrow against their funds’ assets — a trend that’s exasperating some investors.

Stone Point Capital, which is raising money for its 10th buyout fund, is one such firm.

It included language in its fund agreement allowing it to borrow against the vehicle’s assets at any time, according to a person familiar with the matter, who asked not to be identified discussing confidential information.

That provision would empower the Greenwich, Connecticut-based buyout firm to borrow on a so-called net-asset-value loan — a once-unorthodox form of private credit that has grown ...