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2022 has been another incredibly successful year for European fund finance − a year that saw an unprecedented growth in non-bank lender participation, innovative product development (particularly in the NAV space) and a constant deal flow. All this while the macro-economic backdrop has, at times, seemed turbulent. With this in mind and with an eye on 2023, we are pleased to offer our annual poll of predictions from European industry players. We were curious to see what they had to say about 2023 given the current economic climate, so read on to find out for yourself.
Happy holidays from the Cadwalader London Fund Finance practice!
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A quick look at the agenda for the Fund Finance Association’s annual symposium (in less than two weeks!) highlights the continued growing interest in NAV secondaries facilities (i.e., there are now three events dedicated to the use of NAV, hybrid and secondaries facilities, which is a welcome addition given last year’s standing room only crowds for the discussions on these topics). As such, we thought it would be topical to continue our discussion on these facilities, and more specifically, the use of direct pledges in NAV secondaries facilities.
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Global Legal Group this week launched the 2023 edition of Fund Finance 2023 (aka the “Pink Book"), the leading legal treatise for the fund finance industry. Now in its seventh edition, this unique publication provides in-depth analysis of market conditions, regulations and laws, covering 19 key jurisdictions, with 27 expert analysis chapters providing in-depth and up-to-date analysis. As contributing editors, Cadwalader’s Wes Misson and Sam Hutchinson co-authored the Preface and sat down for an interview with publisher James Strode to discuss this latest edition and the year ahead in finance.
As part of Global Legal Group’s launch this week of the 2023 edition of the “Pink Book,” publisher James Strode sat down for a video interview with Terry Hatton, Head of Fund Finance at MUFG, available here.
Those in the subscription credit market will likely be familiar with traditional collateral arrangements over the capital call rights of Cayman funds formed as exempted limited partnerships (ELPs). Recently, however, we have seen a resurgence in the use of funds formed as Cayman exempted companies (CayCos), rather than ELPs, which gives rise to some additional considerations for a lender.
Last Thursday, there was a lot of purple (and rain!) as Women in Fund Finance co-hosted the first FFA event of 2023, along with Cadwalader, Wickersham & Taft and Wells Fargo, kicking off the year with an exciting evening of cocktails and a conversation with Jenn Toyzer, Co-Founder and CEO of UME Plum Liqueur.
ESG in 2023: Fund Finance experts discuss the evolution of ESG, its growing significance to both funds and lenders, and share predictions for the new year. The article is available here.
Private Funds CFO this week published an article on financing the GPs themselves, including detail on the collateral packages and recourse structures GPs will likely be asked to provide from lenders. The subscription-required article is accessible here.
JPMorgan Chase is looking to hire both a vice president and an associate for its Alternatives − Private Credit Secondaries team.
At the beginning of the year, everyone’s LinkedIn newsfeed was flooded with alerts about members of their network updating their profiles with new titles following end-of-year promotions. As newly promoted women partners on the Cadwalader fund finance team, we were incredibly excited to be among those sharing wonderful and exciting career news.
With the pending cessation of panel LIBOR on June 30, 2023, the LSTA’s Tess Virmani and Meredith Coffey recorded a video with Cadwalader partners Lary Stromfeld and Jeff Nagle that discusses the LIBOR transition, synthetic LIBOR, how the LIBOR Act and Final Rule may fit into remediation plans, and how LSTA members might consider analyzing their credit agreements for remediation. You can access the video and slides here.