The Fund Finance Association’s annual symposiums bring together investors, fund managers, bankers and lawyers for education and networking within the fund finance market. The 13th Annual Global Fund Finance Symposium will take place February 26-29, 2024 in Miami Beach.
The FFA has announced esteemed political scientist Ian Bremmer as the keynote speaker for this year.
The Cayman Islands recently received an early Holiday gift when the EU Commission published a regulation in mid-December paving the way to remove Cayman from its list of ‘high-risk’ countries for AML/CFT purposes. The regulation is not yet in force as it goes through a period of scrutiny but will become effective 20 days after its publication in the Official Journal of the European Union.
Congratulations to the several accomplished attorneys promoted to partner, special counsel and counsel effective January 1, 2024. These attorneys have distinguished themselves through exceptional legal skills, outstanding client service and their consistent embodiment of Cadwalader’s values.
When an investor chooses a private equity fund, it is a calculated gamble on that fund’s general partner and more specifically its managing principals and the members of the investment team. The Key Persons are the individuals who the investors believe are critical to sourcing, making, managing and exiting from investments to maximize the investor’s return. A lender providing a subscription facility to a fund is also concerned with that fund’s management. These are the individuals that the lender is partnering with to provide liquidity and the Key Persons provide stability, predictability and, most important to the lender, instill confidence to incentivize an investor to fund its capital commitment to repay obligations under a subscription facility.
While NAV financing has existed for decades, the increased adoption by buyout funds is one of the reasons why NAV has become a trending topic of late, according to Pitchbook in its recent research piece, NAVigating Considerations and Controversies Around NAV Loans. The report is well worth the read as an initial primer and a survey of current NAV discussion topics.
We are thrilled to share a remarkable advancement within Cadwalader’s esteemed Fund Finance team. Effective January 1, 2024, several accomplished attorneys will be promoted to partner, special counsel and counsel. These attorneys have distinguished themselves through exceptional legal skills, outstanding client service and their consistent embodiment of Cadwalader’s values.
The broader announcement encompassing this occasion is slated for Monday; however, we simply couldn’t contain our enthusiasm and wished to offer a sneak peek into this momentous development within our Fund Finance practice.
Brickfield Fund Finance Recruitment has released a 2023 roundup discussing new market conditions and new approaches in fund finance.
Read more here.
Fund Finance Friday readers, as the holiday season approaches, we want to take a moment to express our gratitude for your continuous support throughout the year. In celebration of the festivities and to recharge for an exciting new year, we'll be taking a short break and will be back in January. Wishing you all a joyful and safe holiday season filled with warmth and cheer. We eagerly anticipate reconnecting in the new year.
This year has seen a significant amount of consolidation of sponsors in the private equity market, and this is a trend that is predicted to continue throughout 2024 and beyond.
While nearly all fund finance transactions have change-of-control triggers, such mergers and takeovers between sponsors can present a number of issues in established financings which, at their extreme, may ultimately result in such financing transactions coming to an end.
In this article, we seek to explore some considerations around the impact that private equity manager consolidation may have on fund financings (although it is worth keeping in mind that public listings of an asset manager may also trigger a change of control.)