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Real Deals published an article in which Investec’s Helen Griffiths and Oliver Bartholomew discuss key structural developments for capital call facilities, including cost savings awarded by the master facility agreement, the importance of GP credit ratings, and continuation vehicle solutions. To view a preview or access the full subscription-based article, click here.
Follow this link to read up on Ropes & Gray’s key takeaways from the Fund Finance Association’s 11th Annual Global Fund Finance Symposium in Miami, where market participants gathered to discuss the latest developments in global fund finance and to consider the outlook for the industry in 2022 and beyond.
The Thursday afternoon panel on “Hot Topics in Fund Finance” was chock full of interesting insight on the latest trends in our industry. Subjects included ESG, rated note feeders, continued LIBOR transition and the competition for talent in the market.
The “Fund Finance Market Update” panel focused on the current state of the market. Moderated by Laurie Lawler, Managing Director at Société Générale, the panel included the following: Roshan Chagan, Partner at Ares; Christopher Galletta, Director at SMBC; Julia Kohen, Partner at Simpson Thacher; Micaela Mastrogiannis, Principal at KKR & Co. Inc.; and Georgina Pullinger, Counsel at Appleby. The panel covered a broad range of topics, and here are some of my takeaways.
First off, thank you to all of our clients for a phenomenal 2021 and for all the well-wishes I received from so many in our industry after taking on Head of U.S. Fund Finance duties earlier this month. I'm very excited about this expanded role and just as excited for Sam Hutchinson, who takes on Head of UK Fund Finance duties.
Between Omicron, the holidays, and down-to-the-wire end-of-year closings, it was a hectic finish to 2021. But now that the calendar reads 2022, we wanted to reflect this week on the state of the NAV finance market and provide some thoughts on trends we're observing as 2022 gets underway.
The active underlying deal environment comingled with the December 31st LIBOR transition deadline combined to make November the busiest month in the history of Cadwalader Fund Finance. We have no doubt that’s been the case across the market as a whole, for virtually all institutions and regions. Here are our short-take market observations as we lean into the tape at the finish line.
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.
This was a busy week in the loan market. LIBOR transition is accelerating daily, we have a new form of credit agreement from the LSTA, and what has been deemed an “existential threat” to the syndicated loan market has reared its head once again. Here’s the rundown.
Amending Fund Finance facilities to replace LIBOR as the primary benchmark interest rate has all the makings of a potential client experience disaster for your Fund sponsor clients. This is not just theoretical – we are starting to see real relationship strain develop in practice as a result of the amendment process. Here are our suggestions to best manage the client experience toward a favorable outcome for your Fund sponsors.