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Following on Mike Mascia’s Closing Remarks delivered to young Fund Finance professionals at last month’s FFA University 1.0, here is some back-to-the-basics advice for those who are just starting their careers in fund finance.
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As the traditional subscription facility market has matured, new liquidity and funding innovations have arisen. Enter the rated note feeder. This structural tool in the back pocket of GPs may ease the accessibility of private equity to investors that need to commit capital via a debt commitment and enhance investor returns through collateralized fund obligations. While the use of rated note feeders has gained significant traction over the last couple of years, implementing this structure in connection with a credit facility is fraught with questions. This article provides a background on rated note feeders against the backdrop of fund finance, discusses issues of enforceability in the event of a fund bankruptcy, and dissects the nuances of protective provisions you can use for a rated note feeder in your next fund finance deal.
Cadwalader Fund Finance attorney James Hoggett has been promoted to Special Counsel, effective January 1, 2023.
James, who is based in London, focuses on fund finance, advising both lenders and GPs on a wide range of products, including subscription lines, asset-backed and hybrid facilities, as well as GP support and co-invest structures. His experience covers all asset classes and includes acting on several multibillion dollar facilities to leading primary and secondary funds. Congrats, James!
Third time’s the charm! FFA hosted its 4th Annual APAC Symposium in Singapore on November 3, but for the first time in three years, it was live and in-person to discuss the latest trends and challenges in the industry. Did you miss the forum? Don’t miss the content, too: read the top takeaways from Mourant from the panel discussions here.
On 1 September 2022, the Limited Liability Companies (Jersey) Law 2018 came into force, allowing limited liability companies to be established in Jersey. Jersey has introduced the LLC to attract U.S. investment by creating a vehicle familiar to U.S. clients. In October 2021, Jersey Finance published research showing that the assets managed by promoters with U.S. origin have increased by 230% in the last five years. Appleby’s experience would suggest that this figure has continued to grow since then.
Total private capital assets management have doubled in the past six years to reach $12 trillion. In The New Dynamics of Private Markets, PGIM analysts take a long-term view of the context of this growth and the future direction mainly as it affects investors. Highlights of the report include the discussion on private credit where there appears to be plenty of runway for further growth, and the estimate for potential overall private capital growth from retail participation through, for example, greater defined contribution plan participation.
The Drawdown recently published its latest Fund Finance Tracker, which provides a detailed breakdown of lender data in subscription lines, NAV lines, and GP facilities over the last six months. The statistics offer insight into the type, size, location, and investment strategy of recent Fund Finance deals. In addition to the tracker, the article also highlights emerging Fund Finance trends, such as increased selectiveness by lenders and the uptick in ESG-focused facilities. To read more, please click here.
A big thank you to the more than 500 industry leaders who participated in last week's 2022 Cadwalader Finance Forum in Charlotte. And a special acknowledgment to the nearly 50 speakers – both industry experts and Cadwalader attorneys – whose perspectives made the Forum so valuable for all attendees. See our full list of speakers here.
Last week’s Cadwalader 2022 Finance Forum included a panel titled “Heading Into the Storm: Preparing to Survive and Profit from Turbulence in Finance Markets,” which brought together a panel of industry experts to discuss the current market environment and the opportunities and challenges it presents for finance markets. The panelists included: Scott Bynum, a Managing Director and Portfolio Manager at Mudrick Capital Management; Bryan High, a Managing Director at Barings; James Kim, Head of Distressed Investments at Nuveen; and Cadwalader Financial Restructuring partners Mike Rupe and Casey Servais. The panel was moderated by Cadwalader Fund Finance partner Brian Foster.
NAV lending and its progeny garnered great interest at Cadwalader’s annual Finance Forum, bringing together industry experts on the cutting age of structuring creative solutions for the ongoing liquidity needs of private fund managers. Joining the panel were Akhil Bansal, Managing Director and Head of Credit Strategic Solutions at Carlyle; Robert Camacho, Senior Managing Director at Blackstone; Phillip Titolo, Head of Direct Private Investments at MassMutual; and Michael Vasseghi, Managing Director and Head of Insurance Solutions at Morgan Stanley. Cadwalader Fund Finance partner Angie Batterson served as moderator.
At last week’s Finance Forum, panelists Bryan Kearns, Managing Director at Bank of America, and Michele Simons, Managing Director at Wells Fargo, discussed the 2022 Fund Finance Market in a panel hosted by Cadwalader's Tim Hicks and Leah Edelboim. The aim of the panel was to dive into an analysis of Cadwalader’s raw data from its 2022 transactions, with these leading industry experts weighing in on trends and providing their insights and outlooks for 2023.