Private investment funds (“Funds”) employ a variety of financing structures to improve liquidity and/or obtain leverage, and lenders similarly rely on a variety of collateral and credit support packages for repayment in connection therewith.
The terms of the business arrangement between a private equity fund (a “Fund”) and an investor (an “Investor”) are generally contained in the constituent documents of the Fund, often a limited partnership agreement (an “LPA”), which sets forth the rights and obligations of the general partner and each Investor.
Although the growing market for subscription-backed credit facilities (each, a “Subscription Facility”) has witnessed very few defaults or similar events necessitating non-consensual enforcement actions (each, a “Default”), Subscription Facility lenders and other secured parties thereunder (the “Secured Parties”) nevertheless should understand and, if necessary be prepared to quickly enforce their rights in the collateral pledged under such Subscription Facility—a point consistently reinforced by both bank regulators and risk teams at many of our clients.
Introduction As the fund finance market continues to expand, we have seen a growing interest among real estate...
A fund of hedge funds (“FoHF”) is an investment vehicle that offers its investors exposure to a portfolio...
As the private equity asset class continues to expand2 and private equity fund managers respond to demand by investors for ever-more bespoke products and tailored investments, there has been an increase in the use of alternative fund structures to accommodate such demand. In addition to the proliferation of separate accounts, funds-of-one and co-investment structures, the use of vehicles that employ series, cell or other asset and liability segregation technology has increased, bringing with it opportunities and potential challenges when leverage at the fund or individual series level is sought.
Real estate, buyout, debt, secondary and other closed-end funds have often used subscription-backed credit facilities — also known...
What Is The New Beneficial Ownership Regime? Under recently passed legislation (the “Regime”), Cayman Islands companies and Cayman...
Introduction A power of attorney (“POA”) is a written agreement wherein an individual or organizational person (the “principal”)...
Basel III, a regulatory capital framework for financial institutions, was developed by the Basel Committee on Banking Supervision...