In this Legal Update, we provide suggestions for junior finance professionals new to the fund finance market and offer practical suggestions for beginning their careers with a solid foundation.
What to Know: Tips for New Fund Finance Bankers
- Talk the Talk. Fund finance, like any other specialized area of finance, has its own vocabulary and jargon. To better understand the questions and concerns of various stakeholders, bookmark the Mayer Brown Fund Finance Dictionary for easy reference. Knowing the language of fund finance will also help you…
- Understand the Structure. The key to any fund financing is the structure of the relevant funds and their related entities. The structure often determines the parties to be included in the main loan documentation for any financing as well as the location of the collateral that will secure such financing. Request a detailed structure chart early in any transaction and keep it handy throughout the negotiation as a reference point for credit and security concerns. Speaking of concerns…
- Pick Up the Phone. Many people early in their career prefer to email their colleagues or their lawyers so as not to inconvenience anyone, but a live discussion is often more effective to work through certain concepts. It is your outside counsel’s job to make sure you understand the documentation (and if you are fund-side, your banker’s job to walk through the business agreement on the financial terms until the flow and fee structure is clear and understood by all parties). Your counsel or your banker also enjoy speaking with you, and having a personal connection with such professionals makes it easier to …
- Ask Why. If you don’t understand why certain comments were accepted or rejected, ask a colleague on the deal team or your outside counsel. Understanding the rationale will help you build...