Our new partner expands the firm’s capabilities in structured and asset-backed financings.
For our eighth installment in the FFF Sovereign Immunity Series, we consider the doctrine of sovereign immunity in England & Wales.
Recently, as has been long signaled, the UK's Financial Conduct Authority announced that it would indeed require the International Exchange Benchmark Administration to publish an unrepresentative synthetic USD LIBOR for 1-, 3- and 6-month tenors for an additional year, which is expected to be further extended through September 30, 2024. It has come at a time when we continue to be in the thick of LIBOR transition amendments in our fund finance deals, as June 30, 2023 − the last date of publication of representative USD LIBOR − is quickly approaching. Given this dynamic, the FCA announcement has created some confusion in the fund finance market – and in the broader loan markets. Here we explain the dynamics at work and what it means for fund finance deals.
Kroll Bond Rating Agency (KBRA) examines its portfolio of rated subscriptions facilities in a report published this week. The report reviews KBRA’s $11.3 billion of rated debt portfolio spanning over 40 funds and over 30 asset managers in light of the litany of challenges in 2023, including a potential recession, weakening private investment valuations, and challenged fund performance.
Find the full report here: Funds: Subscription Facilities in Focus.
Significant growth in continuation funds is creating opportunities for specialized fund financing vehicles, according to a recent report by PEI. Single-transaction, commitment-backed facilities, hybrids, and NAV deals have all found specialized applications. But while the current investment landscape supports the need for financing, the optimal configuration of asset-level, fund-level, and investor-level financing can be a bit of a puzzle.
More on that in Hybrids and NAV loans offer unique uses in continuation funds.
"Mastering Secondaries" will be the theme of the next installment of the Fund Finance webinar series hosted by Michael Mbayi of Pinsent Masons Luxembourg on Thursday, April 20.
State Street, Avardi Partners and Intesa Sanpaolo IMI CIB are looking to fill roles.
When a lender is faced with an actual default or even an anticipatory default under a credit facility, a fund borrower will typically request a default waiver from the lender. Another approach that a lender may pursue instead of an outright waiver is to forbear taking action with respect to the default, thus providing the fund borrower additional time to cure the default or comply with a new covenant or performance milestone within a certain period of time.
Bloomberg recently reported that some lenders were setting up trading desks focused on private debt. This, together with the recent events in the banking market and regulatory capital-driven exposure reductions that have been underway for some time now, has caused many lenders to examine the restrictions on loan sales imposed by borrowers via assignment consent rights and the disqualified lender list – the list of entities that are disqualified from becoming lenders or participants under the credit agreement.
PEI’s Fundraising Report 2023, published this week, provides a timely update on the state of play in private market capital formation.