Most people who have had a reasonable degree of interaction with Cayman funds and fund finance transactions will be well aware that different Cayman vehicles have distinct constructions and legal characteristics (in particular, Cayman exempted limited partnerships and their general partners). A recent decision of the Cayman Courts in a case named In the matter of Padma Fund LP (“Padma”) has, for now at least, added an extra factor to consider when engaging with such funds. While Padma provides no reason for immediate alarm from the perspective of lenders in fund finance transactions, it does merit mentioning so that lenders and their advisors can be aware of the prospective issues it could create in practice. Before giving a very high-level (we promise!) summary of the Padma decision and its implications, it is helpful by way of background to run through the most commonly seen Cayman vehicles and highlight some of their notable features.
With the end of LIBOR approaching, PE sponsors entering into new subscription credit facilities will be seeing a non-LIBOR benchmark rate – for U.S. Dollar, most likely the Secured Overnight Financing Rate (SOFR) – in their loan agreements. In this part two of a two-part article, the Private Equity Law Report spoke with multiple borrower-side and lender-side counsel – including Cadwalader's Mike Mascia and Jeff Nagle – about important aspects of LIBOR remediation in the subscription line space that managers should monitor, including the amount of the spread adjustment and the timing of the actual transition. To access the subscription-required article, click here.
The Wells Fargo Fund Finance team is hiring for two Analyst positions to support the bank’s fund-level financing activities to private equity funds and other asset managers through structured credit facilities. The role will be based in London and calls for a Bachelor’s or Master’s degree and prior experience (or long-term internship) at an investment bank, asset manager or another reputable financial services firm.
Several attorneys on Cadwalader’s Fund Finance Team have been promoted to Special Counsel, effective January 1, 2022. They include Cassandra Best, Patrick Calves, Danyeale Chung, Katie McShane, Christopher Montgomery, Mathan Navaratnam and Joseph Zeidner.
Fund Finance Friday will take the week off next Friday for Thanksgiving. We wish all of our readers a very Happy Thanksgiving and some special time with family and friends.
When surveying the finance market landscape over the last couple of years, one thing is certain: ESG has been on the rise. Few topics have trended as hotly in recent memory, and our expectation is that environmental, social and governance dealmaking will only continue to grow in the year to come. Driven by investor advocacy and supported by enhanced outcomes when structured properly, it is increasingly important for fund finance practitioners to be well-versed in ESG. We regularly receive questions on what individuals and organizations need to do to be prepared for the long-term opportunities and challenges that ESG presents. This is your guide to ensure that you and your teams are ready for your first (or next) ESG deal.
This article follows the considerations set out in Chad Stackhouse’s Fund Finance Friday article, “Getting It Right: Recallable Capital Provisions,” published on 9 July 2021.
The FFA opened nominations earlier this week for its prestigious annual Industry Awards. These awards include the Diversity in Fund Finance Association Award, the Annual Contribution to the Industry Award, the Julian Black Lifetime Contribution to the Industry Award, the Dee Dee Sklar Women in Fund Finance Award, and the Next Gen Member of the Year Award.
Register now for Fund Finance 2021. This half-day program features a discussion of the latest trends and developments in fund finance. Learn about current developments in subscription, hybrid, and NAV facilities, as well as how insurance companies are transforming fund finance. Available November 17 in-person and online. Click here for program schedule, CLE credit details and registration.
With the end of LIBOR approaching, most lenders will use a new, non-LIBOR benchmark for any loans issued between now and the last day of the year. In this part one of a two-part article, the Private Equity Law Report spoke to three lender-side counsel – including Cadwalader's Mike Mascia and Jeff Nagle – and four borrower-side counsel about what the end-of-year deadline means and the state of readiness in the PE subscription facility space. To access the subscription-required article, click here.