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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.
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Many subscription facilities governed by New York law grant the lender a security interest in rights to call capital from the limited partners of exempted limited partnerships formed under the laws of the Cayman Islands. This grant is generally set forth in a security agreement governed by New York law even though the rights being pledged are created under Cayman law.
Earlier this week, FFA’s Diversity in Fund Finance (DFF) group shared a message in support of those in the LGBTQ+ community on National Coming Out Day. National Coming Out Day is an annual day of awareness, observed on October 11, to support LGBTQ+ people in coming out and living openly as members of that community and to raise awareness of the challenges that openly-LGBTQ+ individuals face on a daily basis.
Supporters of Diversity in Fund Finance (DFF) and committee members participated in a virtual session with Baruch College’s Financial Leadership Program (FLP) for the fourth year. The FLP is dedicated to the professional development and advancement of high-performing sophomores and juniors interested in careers in finance.
Strafford will host a CLE video webinar next Thursday, October 21 from 1-2:30 p.m. EDT on “Structuring and Documenting Subscription Facilities.” The webinar, which will include interactive Q&A, will discuss the structuring of subscription credit facilities while focusing on partnership agreement provisions that provide financing flexibility. The webinar will also cover defining the borrowing base and exclusion events, loan covenants particular to subscription facilities, and lender remedies. To register for the event, click here.
Baring Private Equity Asia has closed a $3.2 billion ESG-linked subscription facility, according to this subscription-required article from New Private Markets.
Women in Fund Finance (WFF) this week hosted a second installment of its “Fund Liquidity Solutions” virtual event, which was a follow-up to the first liquidity solutions panel that took place in July. This second panel brought together industry experts who have been at the forefront of structuring alternative liquidity solutions for private market managers. The panel continued a conversation about how funds, their lenders, and investors are thinking outside the box to unlock value for their constituents.
Luxembourg is a centre of excellence for investment funds and the second-largest fund domicile in the world after the U.S. As such, it is a great place to observe the evolution of fund finance globally, since Luxembourg funds are commonly involved in fund finance transactions. One of the typical questions asked by lenders and lead counsel in a fund finance transaction involving Luxembourg-based investment funds concerns the enforcement of foreign judgments in Luxembourg.
Understanding and applying either a use-of-proceeds or a performance-based structure is essential to originating an ESG fund finance facility. (Experienced counsel, we’ve heard, also helps.) In the second installment of its ESG fund finance primer, Private Equity Law Report explores the practical implementation of both approaches, with the help of Cadwalader’s Wes Misson and other market participants. Getting the performance objectives right and steering clear of greenwashing fall within the terrain covered.
Join Women in Fund Finance (WFF) and Diversity in Fund Finance (DFF) for a fireside chat with Carla Harris, Vice Chairman of Wealth Management, Managing Director and Senior Client Advisor at Morgan Stanley, as well as gospel recording artist and author of Expect to Win and Strategize to Win, to discuss maximizing success and leadership in your career. The program will be moderated by Deborah Montaperto, Managing Director and Private Wealth Advisor at Morgan Stanley. To register, click here.
After a successful conclusion to the Fund Finance Association’s first annual U.S. Mentorship Program, the Fund Finance Association is now recruiting mentors and mentees for the 2021-2022 program.