In the evolving fund finance market, lenders are constantly assessing ways to mitigate risk and enhance credit support in order to provide for the smooth operation of subscription-based credit facilities. One such credit...more
3/7/2025
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Capital Markets ,
Credit Facilities ,
Financial Institutions ,
Financial Markets ,
Financial Services Industry ,
Funding ,
Investment Funds ,
Investors ,
Lenders ,
Loans ,
Risk Management
We have said it before – the “credit cornerstone” of a subscription credit facility is the limited partnership agreement (the “LPA”) – it is the primary contract, together with any side letters, governing the relationship...more
When the U.S. Small Business Administration’s (“SBA’s”) revised rules for its Small Business Investment Company (“SBIC”) program went into effect last August, it looked like a greenfield market for capital call financing had...more
As most of our readers know, the majority of subscription facilities are secured by the right to call capital and receive capital contributions from the fund’s investors and the bank deposit account into which those capital...more
During times of market disruption and economic uncertainty, the representations and covenants set forth in a credit agreement play an even more important role in the ongoing relationship among the loan parties and lenders....more
For funds that are nearing the end of their investment period and have limited or no remaining unfunded capital commitments, the need to continue a subscription line facility for ongoing liquidity may continue to exist for...more
2/14/2022
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Credit Agreements ,
Credit Facilities ,
Financing ,
Investment Funds ,
Investment Management ,
Investment Portfolios ,
Investors ,
Lenders ,
Loans ,
NAV ,
Private Equity