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When we think about parties to a subscription credit facility (the “Facility”), all eyes are generally on the fund and the general partner (the “GP”), but the investment manager (the “Manager”) is also a party to watch. For the reasons explained here, the role of the Manager can vary from deal to deal, and, depending on the terms of the fund documents, it can create risk for the Facility lender in a subscription deal. Here we will break down those risks and how incorporating certain terms into your credit agreement can mitigate these risks.
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William Cowper once wrote that “variety is the very spice of life.” This could ring true in many circumstances, but is becoming particularly fitting for alternative asset managers, or AAM, when evaluating sources of liquidity across a variety of fund finance solutions. Since the dawn of finance, the differing requirements of debt providers has created a range of financing options across the private and public capital markets. For corporate borrowers, these markets are mature and well understood. However, for AAMs, the debt markets are relatively embryonic and ever evolving, with a range of capital providers. Here we explore the types of capital available to AAMs across the various fund finance products, and the growth of institutional capital in each.
On this week’s FFA Career Conversations podcast, host Joel Buckett of Deutsche Bank Wealth Management speaks with Neno Raic, founder of No Limit Capital. Joel and Neno discuss the market forces that created the need for a non-bank lender in the Fund Finance industry, the challenges that come with being an entrepreneur, and why institutional capital providers should be viewed as a complement to traditional large and midsize lenders.
Fund Finance Partners' co-founder and partner Richard Wheelahan was featured in a Keynote Interview with Private Funds CFO on the increasingly popular NAV financing market, factors that fund GPs should consider, the state of the market, and how LPs are often supportive of using NAV financing to improve fund returns and achieve other investment objectives.
We're excited to announce that our annual "Cadwalader Finance Forum" is coming back as an in-person event in Charlotte once again on Thursday, October 27.
Cadwalader representations on new fund finance facilities in the U.S. rose 17% in the first half to total more than $27.0 billion. (The final tally may rise as we complete our dataset for June closings.) Growth in fund finance origination comes as overall credit markets have decelerated meaningfully. Corporate bond issuance declined by 26% in the first half and non-mortgage structured products issuance came in 70% below 1H 2021.
You’re invited to Crypto Series Part 2, where WFF will host Michele Cito, Bob Diamond and Cristina Dolan to discuss the impacts of cryptocurrencies and blockchain on the economy and financial markets. Join virtually at 12:00 p.m. Eastern/5:00 p.m. BST/12:00 a.m. HKT on Wednesday, August 10. For more information and to register, click here.
It’s time to secure your spot for the 4th Annual Asia Pacific Fund Finance Symposium at the Shangri-La Singapore. To register for the November 3 event, click here.
Fund Fanatics hosts Jeff Maier and Scott Aleali discuss how the current tech downturn is impacting the early-stage venture capital market with Stephanie Campbell, General Partner of The Artemis Fund. Stephanie discusses bright spots and opportunities in the market and how women-founded and women-led companies are outperforming their peers. To learn more about Stephanie, The Artemis Fund, and fund-raising in the current economic environment, tune into the latest episode.
Kristin Castellanos has recently joined TriState Capital Bank in New York as the Head of Fund Finance, where she will continue to provide capital call financing and NAV-based lending to U.S. domiciled alternative investment funds. Kristin was previously at MUFG.
We are very pleased to welcome Linda Filardi as a counsel to Cadwalader’s Fund Finance Group in New York. Linda's practice focuses on leveraged finance, with an emphasis on sponsor acquisition finance and fund finance, including NAV facilities. Linda has spent a considerable portion of her career in senior in-house legal positions for major financial institutions, including, most recently, as Senior Director and Associate General Counsel at Capital One Bank, where she was responsible for legal management of the Financial Institutions Group, Diversified Industries, Regional Banking and Municipal Finance. You can read more about Linda's experience and background here.