Subscription Legal Updates
Foundational Legal Updates
All Subscription Legal Updates
Subscription Credit Facilities: Continuation Funds
When using a subscription credit facility for a continuation fund, lenders and borrower funds should keep in mind certain best practices to ensure that the facility is structured appropriately. In...
The Advantages of Credit Ratings for Subscription Credit Facilities
More common in Europe, the prevalence of obtaining credit ratings for subscription credit facilities has increased in the United States. In this Legal Update, we explain the increasing use of...
Subscription Finance: Alternative Currency Capital Commitments
It has become increasingly common for private equity funds to accept capital commitments in multiple currencies within the same fund (or group of parallel funds), but having capital commitments denominated...
Credit Facilities: Waiver of Consequential Damages and the Interplay with Indemnification Provisions
Credit facility documents typically include a waiver of consequential damages and an indemnification provision. While these provisions are typically part of the "boilerplate" language in the relevant documents, lenders must...
Subscription Credit Facilities: Concentration Limits
In a subscription credit facility, the borrowing base is typically calculated by applying reductions, commonly referred to as concentration limits, to the uncalled capital commitment of each eligible investor (i.e....
Default Interest Considerations in Subscription Credit Facilities
Default interest provisions are often included in subscription credit facilities, and there are various ways parties can handle default interest in the loan documentation. In this Legal Update, we share...
Subscription Finance: Understanding Umbrella Facilities
In an effort to improve cost effectiveness and documentation efficiencies in the subscription finance market, participants have developed “umbrella facilities” to aggregate multiple fund borrowers under the same loan documentation....
Subscription Finance: Electronic Signatures
Should subscription finance lenders give borrowing base credit for investors that signed their subscription agreements using electronic signatures? While there are some exceptions, the answer is generally yes. This Legal...
Subscription Credit Facilities: Cross-Exclusion Events
The growth of the subscription credit facility market has resulted in many lenders holding significant exposure to the same investors across their entire portfolio. Many lenders are required to track...
Subscription Finance: Rated Note Feeder Funds and Debt Capital Commitments
Insurance company investors are increasingly looking to invest in private equity and similar private investment funds via debt capital commitments (as opposed to traditional equity capital commitments) to take advantage...