The standard Day-1 Equity commitment structure works well for vertical strip rated note feeders (“RNFs”), but it can disrupt the negotiated tranche waterfall in horizontal strip structures. This Legal Update proposes a preferred equity alternative that preserves investor priority, maintains ratings neutrality, and provides lenders with an enforceable, borrowing base-eligible commitment (“Day-1 Pref”).
Commercial Reasonableness, Notice Requirements, and the 10-Day Safe Harbor Introduction Partner loan programs and investor loan programs are...
Payment-in-kind interest (“PIK interest”) is the concept of deferring interest owed by a borrower under a credit facility to a later date. Instead of making regular cash interest payments to the lender in the ordinary course, the borrower can elect to satisfy interest payments by incurring additional debt under the facility and reclassifying interest owed as principal loan obligations.
Introduction In the evolving fund finance market, understanding the nuances of debt priority is more critical than ever,...
Overview The fund finance ecosystem is undergoing a transformative shift. What was once a predominantly bank-dominated market has...
Introduction Large family offices and institutional investors are increasingly utilizing NAV loans on their alternatives holdings as a...
Over the past 15 years, we’ve published more than 150 Legal Updates on the fund finance market. Our updates have covered just about every angle, including provisions so niche you’d never think they’d matter—until they do. Individually, each of those updates was written for a moment in time; a response to a market development, a structural innovation, or a legal question that practitioners were actively working through. Collectively, they form something more than that.
As the fund finance market continues to mature and transactions grow in complexity, valuation reports (or “valuations”) and...
This Legal Update explores the considerations that a warehouse lender should bear in mind when deciding whether to...
This Legal Update concludes our three-part series on preferred equity in private capital markets, exploring key tax considerations...