BDCs were introduced to the subscription finance scene a few years back as they rode the growth wave of private debt funds following the financial crisis. Now, they seem ever-so-popular in our market – witness the doubling of the federal statutory leverage limitation applicable to BDCs last March, a sure driver of growth.
What is the Venture Capital Fund Adviser Exemption under the Investment Advisers Act and why is it relevant to loan facilities?
We take a closer look at Borrowing Base/Leverage (or coverage)-based covenants and considerations and issues with each.
Mike Breaux is the Director of Fund Banking for Stifel Bank, a subsidiary of Stifel Financial Corp (NYSE: SF). At Stifel, Mike and his team focus on providing flexible subscription/capital call lines of credit and full-service banking to sponsors across all asset classes. Previously, Mike spent 7 years with Square 1 Bank, now Pacific Western Bank, as Senior Vice President focusing on fund banking.
Some news this week on liquidity challenges for GPs, secondary transactions and European PE deal volume.
Barbara Fleming has joined Grasshopper Bank as Head of Venture Capital and Private Equity Relationships. Grasshopper Bank is a new commercial venture bank built for innovation economy companies and the venture capital firms that fund such companies.
East West Bank is currently seeking a senior Relationship Manager for its Private Equity business in the Eastern U.S.
Here are updates to our Fund Finance Calendar.
This is Part 1 of a series of articles in which we take a close look at some of the provisions and issues in loan agreements that are specific to subscription finance transactions. The commentary is based on LMA (i.e., UK/European) forms of Capital Call/Subscription Finance Loan Agreements, rather than the LSTA (i.e., U.S.) forms. Much of the commentary will be relevant to both but, where principles or considerations differ, this will be flagged in the relevant article. We hope you will follow the series and, to help you do so, the articles will as far as practical follow the same order as the loan agreement.
SEC registrants, including banks, will be required to record allowances for credit losses at loan origination based on a life-of-the-loan loss forecast effective January 1, 2020, under an accounting standard that has been years in the making. Net, net, we think current expected credit losses ("CECL") may aid the relative attractiveness of subscription lending over other bank assets.