The majority of subscription facilities are secured by the right to call capital and receive capital contributions from the fund’s investors and the bank deposit account into which those capital contribution proceeds are deposited by such investors. Focusing on the deposit account, frequently called the collateral account, there are two methods provided by Article 9 of the UCC for perfecting a lender’s security interest in such account: (1) the collateral account is maintained with the lender or (2) the lender and the fund enter into a control agreement with the bank that maintains the collateral account.
We have a final answer to the question of whether a term loan is a security. Yesterday, the Second Circuit Court of Appeals affirmed the District Court’s decision in the Kirschner Case that a term loan is not a security.
On August 23, 2023, the Securities and Exchange Commission voted to implement a number of new requirements for private funds, including requiring private funds to issue quarterly fee and performance reports and to perform annual audits.
From key trends shaping fund finance to NAV finance on the rise – here’s what we’re reading this week.
It's time to register for Cadwalader’s annual Finance Forum on October 19 at The Ritz Carlton in Charlotte, North Carolina.
In this article we look at the lender's right to challenge a sponsor’s valuation of their investments in the context of a NAV-backed financing. This right to challenge is a relatively recent development in these transactions, which has come in and out of vogue depending on the general state of the market, with a notable rise at the beginning of the pandemic due to concerns over the accuracy of valuations in the near term.
A fund is a living, breathing organism that aims to achieve much more than being a vessel for a subscription credit facility. The limited partnership agreement of the fund may have to be amended, restated, supplemented or otherwise modified from time to time to address changes in the regulatory environment or legal requirements.
Despite the global syndicated loan market being down 18% for the first half of the year, Cadwalader has surged to the 12th position among all U.S. syndicated loan legal advisors.
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Cadwalader is proud to sponsor the second annual Charlotte Women in Fund Finance fall forum and networking event. Join us in the Queen City for an exciting and timely panel discussion followed by a networking reception. Additional details to come. You can register here.
All members of the fund finance community are welcome!