On February 8, realdeals published an article titled “LPs should voice discontent over excessive subscription line usage.” The article is based on, and quotes extensively from, the roundtable discussion in the Triago Quarterly publication, which Fund Finance Friday linked to last week. The subscription-required article can be accessed here.
On February 8, S&P Global reported on Golub Capital BDC 3 Inc. entering into a $175 million financing facility with Signature Bank as administrative agent and lender. The article is available here.
Last week Commercial Mortgage Alert released its 2018 league tables for commercial mortgage-backed securities. Cadwalader topped both the issuer and the underwriter tables. Congrats to our colleagues in CMBS! A copy of the article is available here.
The Global Investment Performance Standards (“GIPS,” or the “Standards”) published by the CFA Institute (“CFA”) have long been a set of self-regulated guidelines for investment managers, aimed at promoting standardized and ethical investment reporting to investors. The Standards, while voluntary, are immensely popular with both investors and investment managers. According to CFA, 84 of the top 100 asset managers have adopted the Standards and claim compliance for at least part, if not all, of their business. So what does this have to do with subscription finance?
In commercial arrangements under English law, it is vital that the times allowed for a party to perform its obligation are clear. This is especially true in facility/credit agreements and other financial contracts. Lack of clarity results in mismatched expectations between counterparties and uncertainty as to whether counterparties are in compliance with an agreement.
Triago, a private equity placement agent, portfolio sales agent and strategic advisor, last week published The Triago Quarterly, which included a round table “on subscription line financing abuse and what should be done about it.”
Credit funds, according to an article in Private Equity International, are increasingly interested in lending to funds. Rather than competing head-on with banks, the story is one of carving out a niche where expertise and returns align.
On February 1st, Private Debt Investor published an article titled “Walking a fine sub-line.” The article focuses on the growth of the private debt markets and the resulting growth of subscription finance. Jeff Johnston of Wells Fargo was quoted extensively. The subscription-required article can be accessed here.
