Subscription Legal Updates
Foundational Legal Updates
All Subscription Legal Updates
The Advantages of Subscription Credit Facilities
The market for subscription-backed credit facilities, also known as “capital call” or “capital commitment” facilities (“Subscription Facilities”), continues to grow rapidly, expanding into a broader range of Funds,1 with constantly evolving features and mechanics.
Structuring a Subscription Credit Facility for Open-End Funds
A subscription credit facility (a “Facility”), also frequently referred to as a capital call facility, is a loan made by a bank or other credit institution (the “Lender”) to a private equity fund (the “Fund”).
Lending to Single Investor Funds: Issues in Connection With Subscription Credit Facilities
As the subscription credit facility market continues to experience steady growth, lenders seek to expand their lending capabilities beyond traditional subscription credit facilities to commingled private equity investment vehicles (“Funds”).
Management Fee Subordination: Potential Issues with Subscription Credit Facilities and Management Fee Lines of Credit
A management fee credit facility (a “Management Fee Facility”) is a loan made by a bank or other financial institution (a “Lender”) to the management company or investment advisor (collectively, a “Management Company”) that is typically the sponsor (or affiliated therewith) (a “Sponsor”) of a private equity fund (a “Fund”).
Enforceability of (Debt) Capital Commitments
A subscription credit facility (a “Facility”) is an extension of credit by a bank, financing company, or other credit institution (each, a “Lender”) to a closed end real estate or...
Foreign Investor Capital: Collateral Enforceability and Minimization of Risk
Due to previous challenges in the United States fundraising market for sponsors of real estate, private equity and other investment funds (each a “Fund”), many Fund sponsors have sought to expand their sources of capital to include investors domiciled outside of the United States (“Foreign Investors”).
Subscription Facilities: Analyzing Overcall Limitations Linked to Fund Concentration Limits
As the subscription credit facility (each, a “Facility”) market has evolved further from its real estate fund roots and deeper into the buyout fund and private equity world, lenders (each,...
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...
Sovereign Immunity Analysis in Subscription Credit Facilities
Subscription credit facilities (a "Facility") are a popular form of financing for private equity and similar investment funds ("Funds").
Enforceability of Capital Commitments in a Subscription Credit Facility
A subscription credit facility (a “Facility”), also frequently referred to as a capital call facility, is a loan made by a bank or other credit institution (the “Creditor”) to a...