As part of its Fund Finance Special Report, PEI has released a series of articles relating to recent developments in the fund finance space. The articles cover a range of topics, from the growth of ESG-linked subscription lines to the ongoing expansion of the concentrated NAV facilities in the COVID era.
The subscription finance market is lined up for a busy year after navigating a challenging 2020, according to a recent write-up in PEI. Quoting from a variety of participants well known to FFF readers, the article highlights the resilience of fund finance credit performance, as well as the adaptation of funds and lenders to a changed business environment reflected in changes to deal pricing and through the addition of NAV covenants to seasoned deals.
As noted in last week's issue of Fund Finance Friday, the Fund Finance Association Next Gen’s New York team will host a virtual panel, titled Into the Unknown: A Fund Finance Perspective on “Letting LIBOR Go,” that will discuss LIBOR transition. The panel will take place on Thursday, February 25 from 10-11 a.m. EST. The event’s distinguished panelists will include Jean Lam MacInnes, Executive Director and Counsel at Mizuho Americas; Jeff Nagle, Partner at Cadwalader; and Tess Virmani, Associate General Counsel and Executive Vice President for Public Policy at LSTA. Cassandra Best, Associate at Cadwalader, will moderate. Register here.
In this piece, we discuss Investors pledging their interests in private equity funds to secure their own indebtedness and the corresponding impact on the subscription facility market, including exclusion event considerations.
In this episode of Fund Finance Friday: Industry Conversations, Cadwalader partner Nathan Parker is joined by EQT Managing Director Adam Larsson and Debevoise & Plimpton partner Thomas Smith to discuss the market-leading, ESG-linked capital call facilities put in place by EQT in the second part of last year.
Irish Investment Limited Partnerships (“ILPs”) have been around since the introduction of the Investment Limited Partnership Act in 1994 (the “1994 Act”). Due to certain requirements imposed under the 1994 Act, they have seldom been used – there were only six in existence as of January 2021 based upon statistics published by the Central Bank of Ireland (“CBI”). However, the 1994 Act has now been revitalised by virtue of the Investment Limited Partnerships (Amendment) Act 2020 (the “2020 Act”) to make it fit for modern-day investment purposes and comparable to other fund domiciles. Marking the signing of the Statutory Instrument, the Irish Minister of State at the Department of Finance, said: “The changes will further support Ireland’s offering as a top-tier global location of choice for financial services investments."
The Fund Finance Association Next Gen’s New York team will host a virtual panel, Into the Unknown: A Fund Finance Perspective on “Letting LIBOR Go,” that will discuss LIBOR transition, a topic that has become a major focus of our industry and the finance world generally. The panel will take place on Thursday, February 25 from 10-11 a.m. EST. The event’s distinguished panelists will include Jean Lam MacInnes, Executive Director and Counsel at Mizuho Americas; Jeff Nagle, Partner at Cadwalader; and Tess Virmani, Associate General Counsel and Executive Vice President for Public Policy at LSTA. Cassandra Best, Associate at Cadwalader, will moderate.
According to a Private Funds CFO article published on February 8th, there is heightened interest in using subscription lines to ride out some of the ongoing pandemic. Matt Hansford, head of origination and NAV financing at Investec Fund Solutions, points out how subscription finance has allowed borrowers to bridge through fund closes in light of longer fundraising periods and make improvements to the business in the short-term.
Brickfield Recruitment’s latest article focuses on the need for creative thinking and capacity for innovation as a key skill for fund finance professionals looking to build their careers in 2021. The article features comment from Samantha Hutchinson at Cadwalader, Leon Stephenson at Reed Smith, Jeff Maier at First Republic Bank (and FFA Board member) and Jan Sysel at Fried Frank.
Tune in February 25th as Wildgen’s Michael Mbayi hosts the sixth installment of the new “Fund Finance” webinar series. The sixth installment will provide insight and analysis on the process of negotiating and structuring a credit agreement. Panel members for this installment include industry leaders Benjamin Berman (Latham & Watkins), Kathryn Cecil (Fried Frank), Spencer Goss (RBS International), John Oberdorf (Loeb & Loeb) and Shani Unantenne (ANZ). For more information on the sixth installment, click here.