NAV & Hybrid Legal Updates
Foundational Legal Updates
All NAV & Hybrid Legal Updates
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....
Double Negative Pledges in NAV Credit Facilities: What Fund Finance Lenders Need to Know
With more borrowers and lenders entering into net asset value (“NAV”) credit facilities, lenders may want to consider including a double negative pledge within the covenant provisions of NAV credit...
Benefits and Considerations of Family Office NAV Credit Facilities
Net asset value (“NAV”) credit facilities continue to grow in popularity, not only with traditional private equity funds, but also with family offices.
The Advantages of Net Asset Value Credit Facilities
The market for net asset value (“NAV”) credit facilities continues to grow rapidly, with evolving features and mechanics. As the market matures, it brings new opportunities for both borrowers and...
“2L, or Not 2L, That Is the Question”: Leading the Charge of Second Lien Financings in the European and Asian Fund Finance Markets
Documentation and terms in the fund finance markets have evolved differently in the United States, Europe and Asia based on various factors particular to each market, with each market having its own strengths, innovation and trends.
Fund of Funds Financing: Secondary Facilities for PE Funds and Hedge Funds
Real estate, buyout, infrastructure, debt, secondary, energy and other closed-end funds (each, a “Fund”) frequently seek to obtain the benefits of a subscription credit facility (a “Subscription Facility”). However, to...
Net Asset Value Credit Facilities: An Overview
As real estate, buyout, infrastructure, debt, secondary, energy and other closed-end funds mature beyond their investment or commitment periods (the “Investment Period”), they have often called and deployed the majority...
Separate Accounts vs. Commingled Funds: Similarities and Differences in the Context of Credit Facilities
The use of managed accounts as an investment vehicle has been widely publicized of late with institutional investors such as the California State Teachers’ Retirement System and the New York...