It is no secret that fund managers are becoming increasingly resourceful in their efficient use of leverage in the net asset value (“NAV”) space of the fund finance market. What we have seen since the onset of the pandemic is an increasing number of financing solutions tailored towards family offices and ultra high net worth individuals (“UHNWI”) looking to leverage against their existing limited partnership interests in private funds (“LP Interests”).
European nominations for FFA DEI Emerging Leaders are now open until June 3, 2022. The FFA and Diversity in Fund Finance are continuing to support and recognize individuals in the industry for outstanding contributions to further diversity, equity and inclusion efforts in the fund finance market, their workplaces, and/or the broader community. Successful nominees will receive one complimentary ticket to the FFA European Symposium in 2022! For more information, please click here.
Recently, I was pleased to have the opportunity to moderate a “Boundary Breakers” discussion featuring Keith Wetmore, on behalf of the Diversity in Fund Finance group. Our conversation included a recap of Keith’s professional career, a discussion of his lived experience as an openly gay man in places around the U.S. and how that experience has changed over time, and suggestions for how allied individuals and organizations can further advance diversity, equity, and inclusion of LGBTQ+ and other diverse professionals. Following are some key lessons and takeaways from our conversation.
Wildgen has introduced a new series, “Fund Finance Expert Talks,” where key industry players are invited to a one-on-one discussion with Wildgen Director, Michael Mbayi. Tune into the inaugural episode featuring Nick Mitra, Managing Director at Société Générale in New York. In this first episode, Mbayi and Mitra discuss the growth of the FFA, and “Fund Finance 2.0,” including the growth of hybrid and NAV deals, the introduction of rated note feeders, the priority on ESG, and considerations to keep in mind with the growing complexity of fund structures.
In this article, Carey Olsen provides a market update on a new decision of the courts of the Cayman Islands walking back some of the impact of last year’s decision in Padma, and outline their current recommendations to lenders in the space on how to approach the issues raised going forward.
Mark Battistoni of HedgeNAV LLC authored a guest article for Private Funds CFO titled: “International funds consider the transition to a NAV-based liquidity alternative for currency hedging”. The article covers the use of a NAV loan to cover hedging variation margin obligation. The subscription-required piece is available here.
Secondaries Investor published an article on NAV lending and pref equity structures coming off of 17Capital’s recent successful fundraiser. To view the subscription-required article, click here.
Last week I was fishing with my kids on spring break, and my 8-year-old daughter Parker engaged me in a thought-provoking conversation that really stuck with me as I returned to the desk this week. “Daddy, you know Earth Day is next Friday, right?” she asked me. “What are you doing to help the environment?”
Our focus on ESG in honor of Earth Day continues, and here we focus on reliable ESG data disclosure. There are several big projects underway to help lenders to see a greater level of consistency and depth in the ESG reporting information that borrowers produce.
First Quarter bank earnings clarified the new operating environment in 2022 in which loan growth will continue to be a key driver of earnings growth and valuation. Fund finance business lines can continue to be a material contributor in the year.