ESCs in Fund Employee Co-Investment Loan Programs
Fund sponsors may offer their employees and other investment professionals an opportunity to invest in its funds through...
Legal Update Archive
LEGAL UPDATES
What to Know About Pro Rata Capital Call Requirements in Subscription Credit Facilities
Subscription credit facilities usually require the ability to make, receive, and enforce capital calls on a pro rata...
Understanding LPA Default Remedies
A subscription credit facility is secured in part by the fund’s and its general partner’s (“GP”) right to...
NAV Facilities: The Institutional Limited Partners Association’s New Guidance
Net asset value (“NAV”) facilities are credit arrangements underwritten by the value of a fund’s investment portfolio, in...
How the Automatic Stay in Bankruptcy Can Affect Net Asset Value Facilities
In net asset value (NAV) facilities, the borrowing capacity typically adjusts to reflect changes to the value of...
The Intersection of NAV and Margin Loans: Single Asset and Concentrated Asset Pools
Over the last several years, a need has arisen in the fund finance market, which caters to private...
NAV Facilities: Appraisal and Valuation Challenge Rights
Net Asset Value ("NAV") credit facilities are lending arrangements underwritten on the borrower’s portfolio of investments, where the...
NAV Credit Facilities: The Spectrum of Collateral Structures
Net Asset Value (“NAV”) credit facilities are a tool that borrowers may use to access financing based on the value of their underlying investment portfolio. The users of these facilities are generally private equity funds, family offices, and large investors with diversified private equity holdings.
Subscription Credit Facilities: Understanding Shared Blockers
Private equity structures often use “blockers” to achieve certain tax benefits. In this Legal Update, we explain what...
FinCEN Proposes Rule Reinforcing Financial Institutions’ Duty to Design and Maintain Risk-Based AML/CFT Programs
On June 28, 2024, the US Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a notice of proposed rulemaking (“June 2024...