ILPA this week published a model limited partnership agreement that lives up to its stated mission of providing a starting point for an Investor-friendly fundraise. Here are our observations on the very light provisions in the model LPA covering fund finance.
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This week we bring you an interview with Signature Bank’s Charles Newcomb. Charles is a Managing Director in the Fund Banking Division at Signature Bank. He is responsible for the origination and structuring of debt products for private equity-style funds across all asset sectors. |
An increasingly common trend in subscription/capital call financing, reflecting the increasing appetite of funds in this area, is the utilisation of what is a fairly typical leverage or borrowing base in a subscription/capital call line to facilitate the provision of hedging (either for interest rates or for fx) on top of the standard subscription/capital call line.
American Banker earlier this week published an article titled, “Banks extending more credit to PE. Will they regret it?” The article covers the growth of fund finance as well as discussions of subscription finance on recent bank analysts calls.
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David Arthurson has joined Standard Chartered Bank as Executive Director in its Financial Strategic & Investors Group. |
The FFA earlier this week requested nominations for several awards that will be presented at the FFA's Global Fund Finance Symposium in Miami on February 12-14, 2020.
Here are updates to our Fund Finance Calendar.
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This week we connect with Alex Bolton for a sweeping discussion that covers competing in a crowded lending market and the outlook for fund-level asset-backed lending, as well as his observations on deal pricing. Alex is a senior banker in the New York fund finance team of National Australia Bank. |
A regime for a mix of events which require mandatory prepayment and options for borrowers to make voluntary prepayments, as well as mandatory or voluntary cancellations, are a common feature of all LMA-based loan documents, and a subscription/capital call facility is no exception.
An IASB accounting standard set to take effect in 2021 may lead non-U.S. insurance companies to increase allocations to private funds to diversify existing holdings and to enhance returns.