This week, as part of the Diversity in Fund Finance Group, we connected with PENCIL, the NYC-based non-profit whose mission is to provide New York public school students with access to relationships and opportunities with business professionals. They’ve successfully moved their programs virtual, continuing to support hundreds of students this summer through various programs, including a paid summer internship. Yomi Akinyemi, Director at Wells Fargo, Richard Young, Senior Vice President at Citi, and Natasha Puri, Vice President at Lloyds Bank, joined a Career Panel moderated by Gregg Betheil, President of PENCIL.
Private capital raised in 1H 2020 totaled $438.8 billion, roughly 11% below the 2019 pace on an annualized basis, according to data summarized in PitchBook’s Private Fund Strategies Report Q2 2020. As can be expected in a volatile market, established names fared much better than emerging sponsors at attracting investors, although it’s worth noting that the trend towards greater concentration of capital at top sponsors predates COVID by a couple of years.
In “Subscription Facilities: Variance Rules,” Fund Finance Partners examines the shift in the subscription facility market as a result of COVID-19, emerging trends (including the prevalence of NAV covenants), pricing disparity, and the benefits of umbrella facilities.
This week Private Equity International reported on a recent deal completed by a relatively new challenger bank in the fund finance space, OakNorth Bank: its sub-line facility to customer-focused PE fund, Bluegem Capital Partners.
Cadwalader’s Tax Group takes a look at the newly proposed IRS carried interest regulations and their implications.
Private Equity International reports on the impact of COVID-19 on carry expectations as a result of plunging asset values and delayed exits, and how GPs could look to external financing to plug the gap between delayed carry and commitments to future funds.
In today’s Fund Finance Friday: Industry Conversations, Cadwalader's Samantha Hutchinson hosts Stephen Quinn of 17Capital to discuss liquidity solutions during the COVID-19 era.
Click "Read More" to listen!
Fund finance facilities often provide for the issuance of letters of credit in addition to loans. Such letters of credit are customarily secured by the same collateral pari passu with loans. In syndicated facilities, each lender may agree to participate in the letter of credit liability pro rata to their commitments.
Secondaries Investor reported on the significant uptick in volume of preferred equity transactions in H1, demonstrating that preferred equity solutions continue to be an increasingly important part of the fund finance market.
Haynes and Boone partner Albert Tan moderated a Privcap Podcast earlier this week and, along with guests Jeff Johnston, Head of Asset Management at Wells Fargo Bank and Chair of the Fund Finance Association, and Jonathan Peiper, a Managing Director and Head of Subscription Financing at Mizuho Americas, discussed the fund finance market and provided some market observations amid the COVID-19 pandemic.