Recent financial data have sown seeds of uncertainty about the broader economic outlook. From our vantage, the current environment still favors an outlook for significant growth in 2019 in fund finance. Here's why.
The Women in Fund Finance and supporters thereof, aboard the Biscayne Lady, departed at noon on Sunday from the Eden Roc Marina across from the Fontainebleau Miami Beach. The group cruised around for about two-and-a-half hours, enjoying engaging conversation and refreshing cocktails followed by a tasty and filling lunch, all while taking in the gorgeous Miami weather and scenic views of the gleaming high-rise homes. This was a great start to kick off the Symposium.
Just in time for the Symposium, Investec released its 2019 GP Trends report. The bank’s 9th annual survey of the private equity industry, the report includes feedback from 300 private equity professionals globally on current market conditions. A copy of the report is available here.
The Wall Street Journal reported Friday that Deloitte, a court-appointed liquidator in the Abraaj insolvency proceedings in the Cayman Islands, is asking investors for additional indemnifications and cost coverage. The article also gives updates on the sale and liquidation process, but there is no discussion of fund finance issues. The article is available here.
Market participants started trickling out of the office toward Miami today for the 9th Annual Global Fund Finance Symposium at the Fontainebleau Hotel. Private events start Saturday, and the Symposium formally kicks off with a Welcome Reception sponsored by Harneys on Sunday evening at 6 p.m. on the Ocean Lawn. Cadwalader’s reception is later Sunday evening at 8 p.m. If you have not already registered, we are running into space constraints, but drop by if you are able, and we will let all in that the hotel permits. The formal schedule starts Monday morning at 9 a.m., highlighted by a discussion session with Anthony Scaramucci starting at 9:30 a.m. Thanks to Nick Mitra, Managing Director at Natixis and co-leader of the Symposium’s Content Committee, for submitting the below guest article on the Symposium’s content and agenda. Look out for periodic updates from Fund Finance Friday during the event.
First Vice Chairman | Fund Finance Association
The Fund Finance Association has organized an exciting lineup of content for the 9th Annual Global Fund Finance Symposium to be held at the Fontainebleau Hotel in Miami from March 24 – 26. This year’s Symposium promises to be the largest-ever industry conference in Fund Finance.
It is no secret that LPs have been increasingly focused on conducting greater due diligence on the funds they are looking to invest in, and this trend has intensified since the collapse of Abraaj. A lot of the focus of this enhanced LP due diligence focuses, quite rightly, on fund administration and risk controls. However, greater attention is also being given to how the management company is financed, its cash flow situation and who the appointed accountants are.
Last week, our colleague Amrita Maini published a succinct primer on overcall limitations (available here). Judging by the number of lender inquiries, we thought some data on their prevalence might be of interest. Based on the 252 fund finance facilities Cadwalader closed in the United States in 2017 and 2018, here’s a survey of overcall provisions by the numbers and—we couldn't resist it—a few gratis observations.
We received several additional job postings this week.
Ogier this week published a thought leadership piece titled “Subscription Finance Cayman Islands – Luxembourg Analysis.” The article does a terrific job of summarizing the key issues, particularly with regards to taking security, in both jurisdictions. A copy of the article is available here.