NAV & Hybrid Legal Updates
Foundational Legal Updates
All NAV & Hybrid Legal Updates
Transfer Restrictions in NAV Credit Facilities: Impact on Collateral and Market Solutions
A common hurdle in Net Asset Value (NAV) credit facilities is the presence of transfer restrictions on equity interests. In this Legal Update, we explain how these transfer restrictions operate in NAV credit facilities, their practical implications, and potential solutions for navigating their complexities.
The Spectrum of Loan Portfolio Backleverage Options: A Primer for Private Credit Funds
There is a spectrum of potential financing structures for a private credit fund (a “Credit Fund”) to obtain liquidity, including at various levels in the fund structure, such as at...
NAV Credit Facility Primer: A Fund Finance Guide
Net Asset Value Credit Facilities: An Overview The Advantages of Net Asset Value Credit Facilities NAV Credit Facilities: The Spectrum of Collateral Structures Nav Facilities: Appraisal and Valuation Challenge Rights...
Evolving Competitor Definitions in Fund Finance
Recent developments in fund finance documentation reflect a significant shift in how insurance companies are treated under assignment provisions. Traditionally, “competitor” definitions have served to restrict loan assignments to entities...
NAV Facilities: The Institutional Limited Partners Association’s New Guidance
Net asset value (“NAV”) facilities are credit arrangements underwritten by the value of a fund’s investment portfolio, in contrast to subscription credit facilities (“SCFs”), which are underwritten based upon undrawn...
The Intersection of NAV and Margin Loans: Single Asset and Concentrated Asset Pools
Over the last several years, a need has arisen in the fund finance market, which caters to private equity, venture capital, family offices, and other investment funds (“Funds”) and their...
NAV Facilities: Appraisal and Valuation Challenge Rights
Net Asset Value ("NAV") credit facilities are lending arrangements underwritten on the borrower’s portfolio of investments, where the amount available for borrowing is based on the value of such underlying...
NAV Credit Facilities: The Spectrum of Collateral Structures
Net Asset Value (“NAV”) credit facilities are a tool that borrowers may use to access financing based on the value of their underlying investment portfolio. The users of these facilities are generally private equity funds, family offices, and large investors with diversified private equity holdings.
US Collateral Account Best Practices
A key component of the collateral package for subscription-backed credit facilities (each, a “Facility”) is the security interest an investment fund (each, a “Fund”) grants to the lender(s) under a...
The Benefits of Term Debt Tranches in Fund Finance Products – and What to Consider When Utilizing Term Debt
With new banking rules on the horizon for financial institutions, lenders are looking for new strategies to bolster lending capacity and accommodate debt issuances. One such option is term debt....