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...
A common hurdle in Net Asset Value (NAV) credit facilities is the presence of transfer restrictions on equity interests. In this Legal Update, we explain how these transfer restrictions operate in NAV credit facilities, their practical implications, and potential solutions for navigating their complexities.
This is the second in a three-part series on preferred equity in private capital markets. This Legal Update...