Mike Breaux is the Director of Fund Banking for Stifel Bank, a subsidiary of Stifel Financial Corp (NYSE: SF). At Stifel, Mike and his team focus on providing flexible subscription/capital call lines of credit and full-service banking to sponsors across all asset classes. Previously, Mike spent 7 years with Square 1 Bank, now Pacific Western Bank, as Senior Vice President focusing on fund banking.

By Samantha Hutchinson

Partner | Corporate Finance, Fund Finance

Some news this week on liquidity challenges for GPs, secondary transactions and European PE deal volume. 

Barbara Fleming has joined Grasshopper Bank as Head of Venture Capital and Private Equity Relationships. Grasshopper Bank is a new commercial venture bank built for innovation economy companies and the venture capital firms that fund such companies.

Here are updates to our Fund Finance Calendar.

By Jeremy Cross

Partner | Fund Finance

This is Part 1 of a series of articles in which we take a close look at some of the provisions and issues in loan agreements that are specific to subscription finance transactions. The commentary is based on LMA (i.e., UK/European) forms of Capital Call/Subscription Finance Loan Agreements, rather than the LSTA (i.e., U.S.) forms. Much of the commentary will be relevant to both but, where principles or considerations differ, this will be flagged in the relevant article. We hope you will follow the series and, to help you do so, the articles will as far as practical follow the same order as the loan agreement.

By Chris van Heerden

Staff Attorney | Fund Finance

SEC registrants, including banks, will be required to record allowances for credit losses at loan origination based on a life-of-the-loan loss forecast effective January 1, 2020, under an accounting standard that has been years in the making. Net, net, we think current expected credit losses ("CECL") may aid the relative attractiveness of subscription lending over other bank assets. 

The Dubai Financial Services Authority (DFSA) this week announced fines totaling $314.6 million against two Abraaj group companies for unauthorized activities and misusing investors’ money.

By Samantha Hutchinson

Partner | Corporate Finance, Fund Finance

What you might have missed in private markets news this week . . . 

Subscription facility borrowing is used for administrative ease, and performance is reported to LPs on a gross and an ex-facility basis, according to comments from KKR’s CFO, William J. Janetschek, on the company’s Q2 earnings call Q&A earlier this week.