Featured
Subscription credit facilities are a widely utilized product in the fund finance market, offering sponsors access to a reliable source of financing to bridge capital call and to lenders collateral backed by investors’ capital commitments rather than the underlying portfolio assets of a borrower.
In this article, we will explore the complex due diligence landscape that syndicate lenders must navigate when seeking to join a new or existing credit facility.
Articles
NAV facilities operate by taking a portfolio of assets owned by a borrower and selecting which assets within that portfolio a lender is willing to lend against. This pool of approved assets becomes the “Eligible Pool” of assets, against which the financial covenants can be set. The lenders will likely undertake an extensive due diligence on such “day one” eligible assets and most facilities will have an ability to add further eligible assets during the term of the facility (provided they meet the relevant criteria and the lenders are happy with the relevant diligence). This structure regulates how eligible assets can be added to the pool of assets for which the lenders are happy they can rely on for credit support.
Ahead of the 2025 edition of the Global Legal Group Fund Finance 'Pink Book', Cadwalader’s Wes Misson sits down with James Strode to offer a preview of the highly anticipated ninth edition.
Watch the sneak peek of their conversation here, and stay tuned for the full release next week!
Loan Market Association is excited to announce the launch of the LMA Fund Finance Intelligence Survey in collaboration with the Drawdown.
The Fund Finance Association is delighted to share more details on the fantastic lineup of keynote speakers for the upcoming 14th Annual Global Fund Finance Symposium, taking place February 24-27, 2025 at the Fontainebleau Miami Beach.
.jpg)
We're looking forward to The Future of Fund Finance | Europe next week on 28 January at The Landmark Hotel in London. Cadwalader is proud to be a lead sponsor and have Partners George Pelling and Nick Shiren speaking at the conference, sharing their insights on key industry topics.
Every deal has its quirks but, as anyone who has done a deal with a Lux entity will know, the EU brings its own set of regulatory considerations to the table (primarily AIFMD). In many cases when compared with parallel Delaware and Cayman workstreams, Lux can seem like (and in some cases is) a much more involved process.
We thought the start of the new year might be a good time for a refresher on how the Lux workstream can best be managed, why additional tasks are required (when compared to equivalent Delaware and Cayman vehicles), what these tasks are, and the common deal points that can pop up and give rise to negotiation. In short, how a lender and their counsel can best get their ‘Lux’ in a row to ensure a deal runs as smoothly as possible.
Credit ratings have traditionally been viewed as a tool to aid distribution of fund finance facilities. The role of ratings may be broadening, however, particularly in Europe under the next iteration of risk based capital standards.
The full KBRA report is available here.
The Loan Market Association has published January 2025 Fund Finance Insights highlighting a brief history and the evolution of Fund Finance in Europe.
The document discusses topics such as the emergence of subscription facilities, the fund and financing lifecycle and more.
Read it here.
We're looking forward to The Future of Fund Finance | Europe, on 28 January at The Landmark Hotel in London. Cadwalader is proud to be a lead sponsor and have Partners George Pelling and Nick Shiren speaking at the conference, sharing their insight on key industry topics.