EXECUTIVE SUMMARY -
There is a spectrum of potential financing structures for a private credit fund (a “Credit Fund”) to obtain liquidity, including at various levels in the fund structure, such as at the fund level or by...more
4/8/2025
/ Capital Markets ,
Collateral ,
Credit ,
Credit Funds ,
Debt ,
Financing ,
Investment Funds ,
Investment Management ,
Investment Portfolios ,
Lenders ,
Liquidity ,
Loans ,
Private Equity Funds ,
Securitization
AT A GLANCE -
The rise of the direct lending market has led to a dramatic rise in supporting liquidity strategies to optimize the market. These strategies include the use of financings to provide market participants with...more
3/11/2025
/ Capital Markets ,
Financial Institutions ,
Financial Services Industry ,
Investment Funds ,
Lenders ,
Liquidity ,
Loans ,
Non-Bank Lenders ,
Private Equity ,
Private Equity Funds ,
Private Funds ,
Securitization ,
Structured Finance
EXECUTIVE SUMMARY -
Section 23A of the Federal Reserve Act and its implementing regulation, Regulation W, impose restrictions on banks concerning “covered transactions” with their affiliates. With the increasing...more
EXECUTIVE SUMMARY -
Fund sponsors may offer their employees and other investment professionals an opportunity to invest in its funds through a co-investment program, which a lender may partially finance....more
A subscription credit facility is secured in part by the fund’s and its general partner’s (“GP”) right to call unfunded capital commitments from the fund’s investors, to receive capital contributions once funded and to...more
Executive Summary -
Over the last several years, a need has arisen in the fund finance market, which caters to private equity, venture capital, family offices, and other investment funds (“Funds”) and their sponsors, for...more
8/29/2024
/ Asset Management ,
Capital Markets ,
Credit Facilities ,
Financial Institutions ,
Financial Services Industry ,
Financing ,
Investment ,
Investment Funds ,
Investment Portfolios ,
Loans ,
NAV ,
Private Equity ,
Private Funds ,
Securities ,
Venture Capital
Executive Summary -
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...more
8/2/2024
/ Borrowers ,
Collateral ,
Credit Facilities ,
Financial Institutions ,
Financial Services Industry ,
Financing ,
Investment Funds ,
Investment Management ,
Investment Portfolios ,
Lenders ,
NAV ,
Private Equity Funds ,
Restrictive Covenants ,
Securities
EXECUTIVE SUMMARY -
Private equity structures often use “blockers” to achieve certain tax benefits. In this Legal Update, we explain what blockers are, how they may be used in a subscription credit facility, and what...more
On May 22, 2024, the US federal banking regulators finalized a new set of reporting requirements for bank loans and commitments to fund finance facilities, private credit lenders, and other nonbank financial entities.This...more
Section 23A and Super 23A can create additional complications for lenders in the fund finance market. Intended to protect the stability of financial institutions by restricting transactions with affiliates, Section 23A and...more
6/18/2024
/ Borrowers ,
Covered Transactions ,
Credit Facilities ,
Financial Institutions ,
Financial Services Industry ,
Financing ,
Investment ,
Investment Funds ,
Lenders ,
Loans ,
Private Investment Funds
Recallable capital has become an increasingly common concept in subscription credit facilities. In this Legal Update, we explain the concept of recallable capital and its role in subscription credit facilities, as well as...more
With new banking rules on the horizon for financial institutions, lenders are looking for new strategies to bolster lending capacity and accommodate debt issuances. One such option is term debt....more
1/24/2024
/ Basel III ,
Borrowers ,
Credit Agreements ,
Debt ,
Financial Institutions ,
Financial Services Industry ,
Financing ,
Investment Funds ,
Lenders ,
Loans ,
Special Purpose Vehicles
On December 27, 2023, the US federal banking regulators proposed reporting requirements for bank loans and commitments to the fund finance sector. This change reflects not only the rapid growth in this sector but also the...more