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...
Legal Update Archive
LEGAL UPDATES
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...
Beginner’s Glossary to Fund Finance
The following glossary is intended to serve as a reference tool for those that are new to the...
Feeder Funds
A feeder fund (“Feeder”) is an investment vehicle, often a limited partnership, that pools capital commitments of investors...
Infrastructure Funds Update
Among private investors, the term “infrastructure” denotes a wide range of physical assets that facilitate a society’s principal...
Limitations on Lender Assignments To Competitors In Subscription Credit Facilities and Other Fund Financings
In a typical syndicated credit facility, the lenders are generally prohibited from assigning their rights and obligations under...
Developing Side Letter Issues
Introduction A subscription credit facility (a “Facility”) is an extension of credit by a bank, financing company, or...