Subscription Legal Updates
Foundational Legal Updates
All Subscription Legal Updates
Managing Sovereign Immunity Risk on a Transaction – What Commercial Parties Need to Know
State involvement in commercial transactions continues to increase and remains an area of distinct legal risk for commercial parties.
Subscription Credit Facilities: Temporary Increase Tranches
As the subscription credit facility market continues to evolve, temporary increase tranches have become increasingly common because they enable funds to quickly adjust the facility size in response to changing...
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...
Subscription Finance: Fraud as an Exclusion Event
In the evolving landscape of the subscription credit facility market, the introduction of fraud allegations by an investor against a fund as a new exclusion event marks a pivotal shift....
Subscription Credit Facilities: Considerations for Addressing Recallable Capital
Recallable capital has become an increasingly common concept in subscription credit facilities. In this Legal Update, we explain the concept of recallable capital and its role in subscription credit facilities,...
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....
Subscription Finance: Commingling Collateral Accounts
For loans primarily secured by a cash flow stream, subscription facility lenders heavily depend on collateral accounts as a key element of the security package. In this Legal Update, we...
Subscription Credit Facilities: Understanding Funding Ratios in the Applicable Requirement
Corporate pension plans, governmental pension plans and public retirement systems (“Plan/System Investors”) are common investors in private equity and other similar investment funds (each, a “Fund”). This legal update will focus on the role that funding ratio thresholds play as metrics of the financial condition of Plan/System Investors in a lender’s underwriting process and determination of borrowing base criteria for subscription credit facilities extended to Funds.
Subscription Credit Facilities: An Overview of Aftercare Facilities
An aftercare facility may be a viable alternative to traditional financing arrangements. In this Legal Update, we explain: the differences between aftercare facilities and other credit facilities how aftercare facilities...
Recent Decision in Jones v. PGA Tour Sheds Light on the Limits of Foreign Sovereign Immunity
Subscription facility lenders are rightfully interested in ensuring that capital commitments of foreign sovereign limited partners are enforceable, despite any available claim to sovereign immunity. A recent district court’s decision in Jones...