Streamlining is a hallmark of the PE industry: sponsors constantly pursue it to maximize the value of portfolio companies, as well as to optimize their own compliance and investment management efforts. Therefore, it makes sense for PE sponsors to look to consolidate the various financing facilities they use for fund- or management-level borrowings. A hybrid facility is a logical outgrowth of that effort as a single credit agreement combining the benefits of both subscription facilities and net asset value (NAV) facilities. To better understand hybrid facilities, the Private Equity Law Report recently interviewed Haynes and Boone partner Ellen Gibson McGinnis for her insights on unique traits and trends in this area. Specifically, this article outlines the mechanics of a hybrid facility’s borrowing base; explores some of the pros and cons for sponsors to consider pre-adoption; and explains why hybrid facilities have never achieved widespread adoption as sources of fund financing. For more on NAV and subscription facilities, see “Characteristics and Benefits of NAV Facilities for Secondary Funds” (Sep. 10, 2019); and “Trends in the Use of Subscription Credit Facilities: Structuring Considerations Negotiated With Lenders and Important LPA and Side Letter Provisions (Part Two of Two)” (Feb. 7, 2019).