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One of the important components of the collateral package for a subscription finance facility is the lender’s perfected security interest in the fund’s bank deposit account into which the actual cash constituting the proceeds of the capital calls are deposited (frequently called the “collateral account”). As many of our readers and market participants are well aware, there are two avenues to perfecting a lender’s security interest in a collateral account in the U.S.: (1) entering a tri-party control agreement with the fund and the third-party account holder (establishing control pursuant to Section 9-104(a)(1) of the UCC); or (2) maintaining the collateral account in house at the lender’s institution (establishing control pursuant to Section 9-104(a)(2) of the UCC). However, what do you do if the fund cannot give a lender “control” using either of these methods because it has already ceded control to another bank?
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In the first of our series “ESG in Fund Finance” articles, we summarise and examine the recent publication “A Guide to the Application of Sustainability-linked Loan Principles in Fund Finance” . . .
Cadwalader partner Angie Batterson and associate Ryan Leverone were extensively quoted for a story, “Sponsors Seek Unique Revolver Control,” which appeared in the March 28 edition of LSEG LPC, the publication of the London Stock Exchange.
Cadwalader partner Wes Misson has been named a 2024 “Leader in the Law” by North Carolina Lawyers Weekly.
We are very pleased to announce Fund Finance Senior Associate Olivia Stewart has returned to Cadwalader.
Olivia represents banks and financial institutions as lenders and lead agents in structuring, negotiating and documenting subscription credit facilities for private equity funds.
Olivia received her J.D. from the University of South Carolina School of Law, where she served as Editor in Chief of the South Carolina Law Review and was elected as a member of the Order of the Coif. She received her B.A. from Roanoke College in political science with a concentration in legal studies.
Welcome back, Olivia!
Women in Fund Finance (NYC), NextGen Americas and Moody's are delighted to invite you to a panel discussion on AI's transformative role in finance.
When the U.S. Small Business Administration’s revised rules for its Small Business Investment Company program went into effect last August, it looked like a greenfield market for capital call financing had been opened. For the first time, the agency permitted capital call financing to levered SBICs without requiring SBA pre-approval. Given that the 298 active SBICs manage more than $40 billion in AUM and hold more than $10 billion in unfunded commitments, the opportunity looked rather compelling. But for reasons that we expand on here, limitations the collateral package and lender remedies may lead lenders to treat SBIC capital call lines more like a low advance-rate, unsecured product (with certain enhancements) and less like traditional subscription line of credit.
December 2023 saw the publication by the EU of the near-final version of its ‘Banking Package’ that makes significant changes to the Capital Requirements Directive known as ‘CRD VI’. This article is going to focus on the CRD VI prohibition on the provision of cross-border ‘core banking services’ into the EU by non-EU institutions; currently, it is up to individual European member states to decide whether and how non-European institutions can provide services to their citizens, and that is going to change and national waivers currently in place will terminate.
The Fund Finance Association has announced the agenda for the upcoming European Fund Finance Symposium! The event is an excellent opportunity for private equity industry professionals to network, exchange ideas, and learn from some of the most influential leaders in the field.
We're thrilled to announce the 8th Annual Cadwalader Finance Forum will take place on Wednesday, October 23, in Charlotte.