An express third-party beneficiary provision running in favor of a lender in a fund’s limited partnership agreement (an “LPA”) is helpful for subscription credit facilities. It bolsters the rights and remedies of a subscription credit facility lender (a “Subscription Lender”) by providing it with an independent and direct right to enforce key LPA provisions if the fund borrower defaults under the facility—in particular, rights under the LPA related to calling capital from the fund’s investors, receiving payments, and enforcing LPA remedies against defaulting investors. These protections facilitate a Subscription Lender’s ability to recover payments efficiently and effectively during an enforcement scenario after a facility event of default, thereby mitigating a risk of parties squandering valuable time and resources in lengthy litigation. In this Legal Update, we explain what third-party beneficiary provisions are, why Subscription Lenders seek third-party beneficiary status under LPAs, and how third-party beneficiary rights for Subscription Lenders benefit all parties involved.