Cadwalader's financial services team is hosting the first of a four-part series focused on capital relief trades, where attorneys will discuss the nuts and bolts of these transactions, which a growing number of U.S. banks are exploring to optimize regulatory capital and manage credit risk, including capital benefits, structural considerations and other legal and regulatory issues. The first installment, on Wednesday, June 22 at 1 p.m., will feature partners Jed Miller, Daniel Meade and Ivan Loncar on the topic: "CRT Overview and Regulatory Capital Basics." Please register here.
Luxembourg-based law firm Wildgen published its fourth episode of “Fund Finance Experts Talks” this week, featuring host Michael Mbayi and industry leader Sally Little, Head of Financial Institutions Sector Lending APAC at ING in Singapore. Michael and Sally discuss the timely topic of sustainable finance and understanding the client’s sustainable finance objectives, as well as the similarities and differences of the United Kingdom and APAC region fund finance markets.
If you are in London for the FFA European Symposium, be sure to RSVP to join Women in Fund Finance for a networking brunch on June 29 that promises to deliver exceptional connection and conversation.
With ESG considerations becoming increasingly prevalent in Fund Finance transactions, RBS International surveyed 125 influencers across the Alternatives Funds space to understand how the Science Based Targets initiative can be used to help provide a shared framework for the industry. The report's conclusions can be accessed here.
This week Iron Road Partners published an Analytical Note on the cost allocation of fund finance commitment fees and related charges, such as unused fees, between a commingled fund and applicable co-investors. The note is available here.
Over the last 18 months, we’ve seen a sharp uptick in inquiries from U.S. banks about how to use capital relief trades to manage regulatory capital constraints. Here, we set out our responses to some of the frequently asked questions we’ve received on this topic. Look for a registration link in next week’s FFF for our upcoming webinar series on these transactions.
As we are moving further into the realm of Fund Finance 2.0 and the rise of the NAV facility, there has been a lot written about taking security over the equities of various types of Cayman entities, particularly Cayman exempted limited partnerships and Cayman exempted companies. Here we look at additional considerations when taking security over shares in a CayCo in cases where the register of members is maintained in a jurisdiction other than the Cayman Islands or the United States.
Find out the latest APAC Fund Finance market updates from the experts themselves at the upcoming virtual panel discussion hosted by the FFA's APAC Executive Committee on June 22 from 3-4 p.m. More info is here.
These are trying times for the old 60/40 portfolio. The Wall Street Journal this week highlighted a pivot among PE firms to court retail investors after firms have successfully convinced pension and sovereign wealth funds to up private market allocations. Rather than an across-the-board increase in high-net-worth investors, a greater retail presence may show up mostly in permanent capital vehicles, such as evergreen funds or BDCs, engineered specifically with individual investors in mind.
Investec examines how, despite the increased use of subscription credit facilities in private equity, there has been a stark drop in the average number of capital calls made per fund since 2015, according to recent data. Click here to read the full report, which includes: the industry trends potentially responsible for the decline in capital calls, how the use of subscription credit facilities has evolved, and predictions for the future of capital calls and subscription credit facilities.