As avid LinkedIn users will no doubt be aware, the EU’s focus on lists of various types continues, and the Cayman Islands looks set to be added to the EU’s list of “high risk countries” for anti-money laundering at the end of February (the “EU AML List”). We have set out below the background to this and some high-level thoughts on its effects but, if you are sitting at your desk this Friday simply counting the days to Miami and wondering if this matters to you, the short answer is that it should not have any material impact on the fund finance sector (either on a lender’s ability to accept Cayman entities as credit parties in deal structures or on the ability of sponsors to utilize Cayman vehicles).
Cadwalader has recently seen a growth in the number of funds formed in Jersey and Guernsey that are party to subscription and NAV facilities. We spoke with Julia Keppe, Senior Counsel at Walkers in Jersey, and Zoë Hallam, a Group Partner at Walkers in Guernsey, to learn more about the fund finance market in the Channel Islands.
The February 2022 edition of Private Equity International contained a 15-page special report on Fund Finance. Report topics include the leap to fund finance 2.0, transparency and ESG-linked loans, preferred equity’s rise during COVID, fund financing versus portfolio company financing, and interviews with multiple players in the fund finance field. To access the February 2022 issue, click here.
A new year means new perspectives for the fund finance sector. Last week, Michael Mbayi of Wildgen hosted a panel − featuring industry leaders Jeremy Cross of Addleshaw Goddard; Sarah Lobbardi, Founder of Avardi Partners; Ram Rao of Macquarie; Leon Stephenson of Reed Smith; and Alice Wight of Walkers − that examined fund finance activity during 2021 and the panelists' perspectives on what to expect for 2022. For more information and a link to the webinar recording, click here.
Private Equity International this week published an article by Anastasia Kaup, a partner at Fund Finance Partners, titled “Fund financing vs. portfolio company financing.” The article summarizes the differences between subscription credit facilities, net asset value (NAV) or asset-based loan credit facilities, hybrid credit facilities and how fund sponsors pursue a particular fund financing solution. Click here for the article.
With the Super Bowl just around the corner, tune in for this week’s special Super Bowl edition of Fund Fanatics. Jeff Maier and Scott Aleali are joined by former Super Bowl champion and now Private Equity Partner & Head of Business Development at Adams Street Partners, Gary Fencik. In this segment, Fencik discusses his role on the Super Bowl champion 1985 Chicago Bears team, the cross section between sports and Private Equity and the importance of establishing the right culture.
Brickfield Fund Finance Recruitment has published its first Fund Finance Voices feature of 2022, featuring Robin Smith of Carey Olsen, who talks about his career and working offshore, as well as giving his views on the future of the fund finance industry.
Wells Fargo's Subscription Finance Group has made some recent promotions, including: Dirk Kaiser was promoted to Managing Director; Nake Grewal was promoted to Director; Cristina Savu was promoted to Director; Jaspa Douse was promoted to Vice President; and Ben Echols was promoted to Vice President. Congrats to Dirk, Nake, Cristina, Jaspa and Ben!
Cadwalader’s Fund Finance team is excited to announce that Michael Hubbard has joined the practice in our London office. Mike arrives from Lloyds Bank, where he was a director in the Loan Markets team focusing on origination and distribution of fund finance products. Over his 17 years of industry experience, Mike has been responsible for originating, structuring and syndicating some of the largest fund financings in the European industry, including capital call facilities, GP financings and NAV facilities across all asset classes. We are thrilled to welcome Mike as the latest addition to our transatlantic team. Please visit here for the full press release.
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Eric Starr rejoined Cadwalader's Fund Finance team as a Special Counsel this week. Eric is based in our Charlotte office and represents lenders on subscription facilities, capital call lines of credit, GP financings and NAV loans. |
