ESG (Environmental, Social and Governance) is everywhere. From landmark climate regulations approved in Europe in June to new ESG disclosure rules in China, from sustainable investments growing by double-digit multiples to research that ESG methodologies significantly enhance portfolio company performance – hardly a day goes by where there isn’t a new report that ESG is soaring. This article continues our series of posts related to ESG in Fund Finance by taking a deeper dive into KPIs (key performance indicators), SPTs (sustainability performance targets) and UoPs (uses of proceeds), the foundational drivers of finance-related ESG. We analyze these according to the SLLP (Sustainability Linked Loan Principles) and GLP (Green Loan Principles) promulgated by the LSTA, LMA and APLMA so that you can structure them effectively in your deals. It’s a veritable alphabet soup of ESG.
The ARRC has now formally recommended forward-looking Secured Overnight Financing Rate (SOFR) term rates. This is big news for your fund finance deal documents. While nothing will change in your documents immediately, here is a rundown of what the ARRC's guidance means for your deals.
FFA University will be held virtually on Tuesday, September 21. The full-day, in-depth training program is designed for bankers and lawyers new to fund finance or seeking a refresher. This version of FFA U is geared to professionals transacting under U.S. law. The cost is $195. Please consider supporting the FFA and your newer teammates by encouraging their participation.
The registration link is available here.
The FFA’s Diversity in Fund Finance group published its second Diversity Spotlight newsletter last week. The newsletter includes an excellent “How to be an Ally” article by Anastasia Kaup, a calendar of upcoming events, along with a summary of recent ones, member profiles and more. The newsletter is available here.
CIBC Innovation Banking is hiring an Associate in New York to support the growth of its Fund Banking group. The right candidate will work closely in supporting Venture Capital and Private Equity funds focused on the Technology sector. If interested, please reach out to Tej Sahi.
In this week’s FFF: Industry Conversations, Cadwalader partner Samantha Hutchinson sits down with Citco's Michael Peterson and Shiraz Allidina to discuss market growth, the globalization of fund finance products, institutional capital and more.
Cadwalader partner Jeff Nagle joins special counsel Leah Edelboim to discuss the latest in the LIBOR transition in another installment of FFF: Industry Conversations. In this conversation, Jeff gives us insight into where we are in the benchmark transition and what it means for fund finance documents.
Women in Fund Finance (WFF) Europe this week hosted “ESG Trends in Private Markets,” a virtual panel discussion on the ESG trends in private markets, with a focus on private equity. The panel discussed how sponsors are approaching and embedding ESG, drawing on themes from the recent PwC Global Private Equity Responsible Investment Survey.
Standard Chartered Bank and Intermediate Capital Group PLC issued a press release this week regarding a new €1.45bn ESG-linked subscription facility for ICG Europe Fund VIII, with the lending group comprised of Standard Chartered Bank, BNP Paribas, ANZ Banking Group Limited, ING Bank and Royal Bank of Canada.
Fund Finance Partners outlined why large and small founder- or employee-owned companies seeking institutional capital need to assess how an institutional asset manager would view the company through their environmental, social, and corporate governance policies.