The majority of subscription facilities are secured by the right to call capital and receive capital contributions from the fund’s investors and the bank deposit account into which those capital contribution proceeds are deposited by such investors. Focusing on the deposit account, frequently called the collateral account, there are two methods provided by Article 9 of the UCC for perfecting a lender’s security interest in such account: (1) the collateral account is maintained with the lender or (2) the lender and the fund enter into a control agreement with the bank that maintains the collateral account.
We have a final answer to the question of whether a term loan is a security. Yesterday, the Second Circuit Court of Appeals affirmed the District Court’s decision in the Kirschner Case that a term loan is not a security.
On August 23, 2023, the Securities and Exchange Commission voted to implement a number of new requirements for private funds, including requiring private funds to issue quarterly fee and performance reports and to perform annual audits.
From key trends shaping fund finance to NAV finance on the rise – here’s what we’re reading this week.
It's time to register for Cadwalader’s annual Finance Forum on October 19 at The Ritz Carlton in Charlotte, North Carolina.