In the context of a subscription facility to an Irish 110 Company, limited market practice appears to favor allowing Irish 110 Company borrowers to prohibit lender assignments to non-qualified persons under any circumstance, including a payment event of default, bankruptcy, insolvency and/or acceleration as a result of “tax issues.” That market practice appears driven more as a matter of convenience for the Irish 110 Company than actual “tax issues” – especially when viewed in the context of limiting a lender’s right to exit a troubled credit versus the tax impact of that exit on a borrower who is in the midst of one or more material events of default. Instead of a flat prohibition on assignments to non-qualified persons, the analysis should involve going beyond the real or perceived “tax issues” to find the point on the allocation-of-risk spectrum where the concerns of a lender in maintaining its sacred right of assignability outweigh the real or perceived tax issues of an Irish 110.
Matt Taber is a Partner at global offshore law firm Harneys and leads its Cayman Islands fund finance practice. He has represented lenders in over 50 fund finance transactions in the last 12 months on the Cayman Islands aspects of their deals. FFF caught up with Matt this week for a Q&A.
Congrats to our Partners in our Capital Markets group for earning both the Structured Finance and Securitization “Team of the Year” and “Deal of the Year” awards at the International Financial Law Review (IFLR) Americas Awards earlier this month in New York.
Publicly listed GPs raise larger flagship funds than their private counterparts, wait less between fundraises and outperform on IRR and PME metrics. These are the conclusions in a recent Pitchbook research note examining the effects of going public on GP behavior. Beyond these findings, the report is helpful in filling in the backstory behind today’s macro themes.
Brad Boland joins Signature Bank.
State Street has launched a search for a department head to lead the bank’s Alternatives Lending group; and the Cadwalader New York office seeks an associate to join its New York Fund Finance practice.
With the Memorial Day holiday in the United States, it was a relatively quiet week in Fund Finance. Our summer interns started last week, and we assigned a summer associate with reaching the end of the Internet in hopes of finding something new. To little avail. The break did give us all a little time outside the office, and I finished reading White Shoe: How a New Breed of Wall Street Lawyers Changed Big Business and the American Century. Below is a short review.
Cadwalader is holding its inaugural Fund Finance Review in the UK in our London office on June 5. Partners Jeremy Cross and Samantha Hutchinson will be joined by Coller Capital’s Mark Hindriks to provide a market overview and discuss best practices in fund finance following recent developments.
The Fund Finance Association’s Women in Fund Finance group this week announced a spinning and networking event at the Peloton Studio in New York.
Here are updates to our Fund Finance Calendar.