Fundraising and Subscription Facility Growth
Fund financings experienced positive growth and strong credit performance as an asset class through the end of 2016....
Legal Update Archive
LEGAL UPDATES
Partner and Employee Co-Investment Loan Programs for Private Investment Funds
As the fund finance market continues to mature, fund-related product offerings are expanding both in number and in customization, attracting a broader array of private equity and real estate funds (“Funds”) and credit providers, and increasing the range of the financing products available to Funds and their Sponsors (“Sponsors”) beyond the traditional subscription credit facility product.
Lending to Irish Regulated Funds
Overview of the Irish Funds Industry Ireland is regarded as a key strategic location by the world’s investment...
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”).
Fund of Funds Financing: Secondary Facilities for PE Funds and Hedge Funds
Real estate, buyout, infrastructure, debt, secondary, energy and other closed-end funds (each, a “Fund”) frequently seek to obtain...
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”).
Leveraged Loan Regulatory Uncertainty Presents Opportunities for Direct Loan Funds
The appetite of institutional investors for yield continues in the current low interest rate environment and has created...
Enforceability of (Debt) Capital Commitments
A subscription credit facility (a “Facility”) is an extension of credit by a bank, financing company, or other...