Private Funds CFO this week published an article coming off of the FFA’s European Fund Finance Symposium in London last week that covers the varying use cases by sponsors with NAV loan proceeds. The subscription-required article is accessible here.
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Private Funds CFO writes about the greater participation of private credit funds, insurance companies and other non-bank lenders in the fund finance market, pointing to a real-time poll taken during last week’s FFA European Fund Finance Symposium. The subscription-required article is accessible here.
ANZ is seeking both a Director and an Associate Director of Research & Analysis to cover the Funds sector within its Financial Institutions Group.
We have recently been fielding a number of questions from our lender clients on the application of certain investor side letter provisions on the collateral package that secures the repayment of a subscription credit facility. A typical collateral package for subscription credit facilities consists of the fund’s limited partners’ unfunded capital commitments, capital contribution proceeds, and the general partner’s right to call capital from the limited partners. It is common for investors to enter into side letters, which are separate written agreements with the fund which amend, supplement, and alter the terms of the investors’ rights and obligations under its limited partnership agreement with the fund. These changes agreed to by the fund in a side letter may have material implications on a lender’s subscription credit facility. Here we take a look at certain side letter provisions that impact a subscription credit facility, how these provisions operate, and how lenders look to mitigate the risks associated with the consequences of the side letter provisions.
The Fund Finance Association European Symposium was held this week in London, bringing the industry together in Europe for the first time since 2019. The event was a tremendous success, with a packed agenda spanning three days from the opening reception on Monday through to the conclusion of the symposium with the Women in Fund Finance Networking Brunch on Wednesday morning.
Cadwalader’s financial services team will host the third part of its four-part series focused on capital relief trades on July 13. Part 3, titled “U.S. Legal and Regulatory Considerations” and led by partners Jed Miller, Daniel Meade and Ivan Loncar, will look at: Securities Law (Disclosure); Risk Retention; Tax; Swap Regulation; Commodity Pool; Insurance Regulation; Volcker Rule; Regulation W; and the Banking Holding Company Act.
You may register here for the July 13 (1-2 p.m.) webinar.
You may also view replays of Parts 1 (“CRT Overview and Regulatory Capital Basics”) and 2 (“Unpacking Regulation Q”) of the webinar series.
Private Funds CFO provides initial highlights from the packed Fund Finance Association European Symposium. Non-bank NAV lenders expect to benefit from higher rates, insurance company inflows, NAV/preferred equity hybrids and more, reports PFCFO. Full news here.
Maples Group recently released its June 2022 edition of FUNDed: An Industry Newsletter for the Global Fund Finance Market, which features a series of global market reviews, including specific reviews of the fund finance markets in the United States, Europe and Asia. One of the global market trends highlighted is the steady growth of ESG transactions over recent years and why to expect that growth to continue throughout 2022. The newsletter also featured other articles, including a thoughtful overview of Irish Collective Asset-Management Vehicles (i.e., ICAVs) and another that provides practical takeaways on the Jersey Limited Partnership − 2022 Amendments from a lender’s perspective. Find access to the full newsletter here.
As we near the close of the second quarter, eagerly look forward to next week’s 6th Annual FFA European Fund Finance Symposium in London and keep a watchful eye on the macroeconomic environment, we thought it would be helpful to provide an update on 2022 market activity based on our observations.