The Benefits of Term Debt Tranches in Fund Finance Products – and What to Consider When Utilizing Term Debt
With new banking rules on the horizon for financial institutions, lenders are looking for new strategies to bolster...
Legal Update Archive
LEGAL UPDATES
Subscription Finance: Commingling Collateral Accounts
For loans primarily secured by a cash flow stream, subscription facility lenders heavily depend on collateral accounts as...
Fund Finance Reporting Requirements Proposed by US Banking Regulators
On December 27, 2023, the US federal banking regulators proposed reporting requirements for bank loans and commitments to...
Subscription Credit Facilities: Understanding Funding Ratios in the Applicable Requirement
Corporate pension plans, governmental pension plans and public retirement systems (“Plan/System Investors”) are common investors in private equity and other similar investment funds (each, a “Fund”). This legal update will focus on the role that funding ratio thresholds play as metrics of the financial condition of Plan/System Investors in a lender’s underwriting process and determination of borrowing base criteria for subscription credit facilities extended to Funds.
Double Negative Pledges in NAV Credit Facilities: What Fund Finance Lenders Need to Know
With more borrowers and lenders entering into net asset value (“NAV”) credit facilities, lenders may want to consider...
New “Climate Reporting” Laws in California – Emissions and Climate-Related Financial Risk Disclosure Required
Two new bills have been passed in California as part of a “Climate Accountability Package” that require US-based...
Collateralized Fund Obligations: Considerations for GPs and LPs
Collateralized fund obligations (“CFOs”) have garnered attention recently, becoming increasingly popular within the fund finance market as a...
Subscription Credit Facilities: An Overview of Aftercare Facilities
An aftercare facility may be a viable alternative to traditional financing arrangements. In this Legal Update, we explain:...
Benefits and Considerations of Family Office NAV Credit Facilities
Net asset value (“NAV”) credit facilities continue to grow in popularity, not only with traditional private equity funds, but also with family offices.
Recent Decision in Jones v. PGA Tour Sheds Light on the Limits of Foreign Sovereign Immunity
Subscription facility lenders are rightfully interested in ensuring that capital commitments of foreign sovereign limited partners are enforceable,...