I hope everyone got some well-deserved downtime over the holidays and enjoyed a fun New Year’s.
We are closing in on having our final 2019 numbers and completing our data project and look forward to making that information available to our clients in the coming weeks. But directionally, 2019 was very positive, with growth rates again well into double digits. In fact, the volume of closings in December was so robust that it felt like maybe our entire active portfolio may well have come off the board.
In our last article, we looked at the first part of a typical clause in an LMA-based subscription/capital call finance facility and particularly at information covenants. In this article, we take a look at the other areas typically covered by the covenants and undertakings in these facilities and, as always, with a focus on those which are more specific to the subscription/capital call finance world.
The first days of January feel familiar in some ways – we’re off into a new year with what once again looks like a “growing but slowing” economy and markets that are yield-starved across the board. This mix has clearly been beneficial to private market fundraising in recent years as investors have been willing to forgo liquidity to access private market returns. Unlike this time last year, however, central banks are back in play.
Jeff Maier of First Republic Bank published an article this week on LinkedIn titled: "The LPA and Investor Appetite for Subscription Credit Facilities."
This week we connect with Kevin Lynch, a partner in the Arthur Cox Finance Group in Dublin. Kevin has extensive experience in banking and finance transactions, with an emphasis on domestic and cross-border finance transactions and financial services. Kevin acts for a wide range of financial institutions, funds (both Irish and non-Irish domiciled), corporates and corporate service providers (including AIFMs and Depositaries), advising on funds lending transactions including subscription call facilities and real estate funds financing. Kevin’s practice also includes asset/property finance, acquisition finance, derivative products and structured finance.
Cadwalader is advising the Loan Syndications and Trading Association (“LSTA”) as external counsel in connection with drafting its new Form of Credit Agreement – Investment Grade Term Loan (“IG Term Loan”).
Here's a look at what we're reading outside the four corners of fund finance.
Here are updates to our Fund Finance Calendar.
Our Fund Finance team had a great year, and we are extremely grateful to our clients and counterparties for entrusting us with your most important matters. We enter 2020 with a ton of optimism about our market’s prospects and potential. We are excited about a number of new initiatives we are undertaking next year to try and contribute to your business and our market, including a new Pink Book, an updated and improved data project, staffing additions, a new 2.0 version of fundfinancefriday.com, a new event schedule and more. Thanks for supporting us in 2019. Have a great holiday!
Open-ended funds are gaining ground, particularly on the private credit and commercial real estate debt side. We review the key considerations for structuring a subscription facility to this historically underserved segment of the market.