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Previous FFF articles have discussed an increase in demand for GP and co-invest facilities over recent years. In light of current circumstances, some market participants are already predicting an increase in the popularity of these products, with GPs, managers and co-invest participants wanting to ensure they have an available source of liquidity to meet their obligations to provide capital to their funds. Anecdotally, and in line with these predictions, we have seen a healthy uptick in work around existing GPPS facilities (increases, additional borrower accessions) over recent months.
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As I write, Geoff Woolf, one of my former colleagues and partners who I have always regarded as a mentor, is severely ill with COVID-19. We have written a lot in many recent editions of Fund Finance Friday about the impact of this awful virus on our world, the economy and Fund Finance in all its aspects, but underlying all of that, of course, are the innumerable ripples being felt by so many people around the world at this time as their families, friends and colleagues are impacted.
Melanie Herald, Managing Director, Head of Alternative Lending at State Street, joins Cadwalader’s Mike Mascia in this week’s podcast edition of Fund Finance Friday: Industry Conversations. Melanie discusses her role at State Street and her team’s market focus in fund finance. She also discusses the impact of COVID-19 on her team’s business, as well as that of the bank’s clients, and forecasts how the market is likely to evolve as a result of the disruption.
Earlier this week, Women in Fund Finance hosted a "Global State of the Market" virtual presentation where members from across the U.S., Europe and Asia provided updates on what they are seeing in the market during the COVID-19 pandemic with respect to fundraising, sponsor behavior and investor insight. Members also discussed the challenges women are facing around balancing careers and family life (including home schooling and plans for summer).
According to The Drawdown, there has been a recent rise in LPA amendments primarily focused on changing investment strategies, extending investment periods and allowing for access of more liquidity. This article features two Cadwalader partners, Samantha Hutchinson and Michael Newell.
Jeff Maier, Senior Managing Director – Private Equity Finance at First Republic Bank, recently joined TresVista for a podcast on the fund finance market, including subscription facilities, management fee facilities and other fund finance products.
Standard Chartered just closed on one of the first-ever impact-focused subscription finance facilities with one of the world’s largest private markets investment managers. The aim of the new-age facility is corporate social responsibility and to promote investments in sustainable projects.
Here's a look at what we're reading outside the four corners of fund finance.
NAV-backed facilities have been the talk of the town for several weeks now in the fund finance world. It seems not a day passes without this financing solution being touted as one of the key liquidity options GPs are currently considering. Whilst NAV facilities have been around for a long while, they have historically been used to finance large diversified portfolios of assets, particularly in the secondaries, fund of funds and private credit spaces. However, many primary managers are increasingly looking to these facilities for both defensive and offensive purposes. Why is it that these facilities are becoming so popular with primary managers and what are the challenges to putting one of these types of facilities in place?
On February 7, 2020, the Cayman Islands Private Funds Law, 2020 (the “PF Law”) came into effect, requiring certain closed-ended Cayman-domiciled funds (“Funds”) to register with the Cayman Islands Monetary Authority (“CIMA”) by August 7, 2020. With the August 7 deadline fast approaching, Lenders are increasingly seeking the inclusion of language to safeguard the enforceability of their security, and there is certainly no shortage of negotiation involved in this process. While we have seen various Fund Finance Friday articles from Cayman counsel on the new PF Law itself, this article focuses on drafting concerns and mechanics in subscription credit facilities, and the implications for Lenders and Funds alike.
Jan Sysel and Adam Summers, Partners at Fried Frank, join Cadwalader’s Mike Mascia in this week’s podcast edition of Fund Finance Friday: Industry Conversations. Jan and Adam cover what Fried Frank is seeing in fund formation and fund finance as the market stabilizes into month three of the disruption. They cover the current fundraising market and the pipeline for subscription facilities, and give forecasts around the impact on NAV facilities of mark write-downs when 2nd quarter financials become available. Adam also provides an update on the leverage finance markets.