New sources of capital will shake up the fund financing market in the coming years, according to a ground-breaking report into the sector by Funds Europe in association with RBS International. The arrival of new entrants providing fund finance was highlighted by experts interviewed for the report, titled "Trends in fund finance," featuring interviews with professionals in various jurisdictions.
Placement agent and PE investment bank Triago released its Private Equity Review & Outlook − Winter 2022-2023 this week, which includes a transcribed panel focused on non-dilutive financing options for GPs themselves (as compared to GP stakes-type equity solutions). Panelists include Brad Coleman (Hunter Point Capital), Augustin Duhamel (17Capital), Anthony Maniscalco (Investcorp) and Tom Glover (BC Partners). The report can be accessed here.
Next Thursday, January 19, Women in Fund Finance will ring in 2023 with a special New York event, “Private Equity to Entrepreneur,” featuring an evening of cocktails and conversation with Jenn Toyzer, co-founder and CEO of UME Plum Liqueur, who will discuss her career journey from investment banking to business founder. Wells Fargo Managing Director Michele Simons and Cadwalader partner Leah Edelboim will serve as moderators. Click here for more info.
Yao Zhang has recently joined TriState Capital Bank in New York as the Vice President in Fund Finance, where she will continue to provide capital call financing and NAV-based lending to U.S.-domiciled alternative investment funds. Yao was previously at Deutsche Bank, UBS and BlockFi, focusing on financing solutions in the alternative fund space.
Happy New Year! As we begin the new year and look back at the developments in the fund finance market in 2022, and look forward to what 2023 has in store for us, one common theme is the continued increase in the use of NAV financing products, both in the U.S. and European markets. Several market participants noted (in our European market predictions article last month) the rise of the use of NAV facilities in 2022 and their expectations that this will continue in 2023 as funds look to manage their liquidity in the current environment and as funds, sponsors and lenders become more comfortable with these products.
We continue our alphabetical 50-state survey of sovereign immunity with our fourth installment in the series – this week summarizing sovereign immunity in Kansas, Kentucky, Louisiana, Maine and Maryland.
Private Funds CFO speaks with fund finance industry professionals, including Cadwalader’s Wes Misson and FFA chair Jeff Johnston, about some reasons for the increasing diversification of subscription line lenders to private funds in the article, “Big Banks Dial Back on Sub Lines, but Market Shows Signs of Resilience.”
No Limit Capital this week released its 2022 Annual Market Update, which can be requested from this link.
The liquidity squeeze you should have seen coming: Asian markets such as Hong Kong “squeeze” their way back into being global players in the fund finance space as other banks across the globe scale down due to capital constraints. Read more about how these key players are taking advantage of their competitors in PFCFO here.
Fi Dinh has been named Head of Fund Finance for the Asia Pacific (APAC) Region at MUFG Investor Services, where she will focus on expanding the fund financing business in APAC and supporting the overall growth of the global asset servicing and fund administration business. Click here to read the full MUFG press release.