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As a way to increase the availability of uncalled capital and deploy additional capital for new and existing investments, limited partnership agreements will typically permit the general partner to recall proceeds from investments received by a fund borrower (a “Fund Borrower”) and subsequently distributed by a Fund Borrower to its limited partners (“Fund Borrower LPs”). It is important for a lender and its counsel to review the recallable capital provisions in a limited partnership agreement in connection with a prospective or existing subscription credit facility (a “Facility”). Fund Borrowers usually request that a lender include recallable capital in the lender’s calculation of remaining uncalled capital, which effectively increases the borrowing base and availability to a Fund Borrower under a Facility. Careful analysis and understanding of the recallable provisions and limitations in a limited partnership agreement is a prerequisite in responding to such a request. In this article, we will touch on a few categories of recallable capital commonly found in limited partnership agreements.
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In this week’s FFF: Industry Conversations, Cadwalader partner Samantha Hutchinson sits down with Citco's Michael Peterson and Shiraz Allidina to discuss market growth, the globalization of fund finance products, institutional capital and more.
Cadwalader partner Jeff Nagle joins special counsel Leah Edelboim to discuss the latest in the LIBOR transition in another installment of FFF: Industry Conversations. In this conversation, Jeff gives us insight into where we are in the benchmark transition and what it means for fund finance documents.
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The Goldman Sachs Asset Management team is hiring an analyst in New York to join its Alternative Capital Markets & Strategy (ACMS) Fund Finance team. For more details or to apply, please check out the GS careers site.
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Women in Fund Finance this week hosted “Fund Liquidity Solutions,” a virtual event that looked at some of the most innovative liquidity structuring and solutions being employed across the private markets. The panel brought together industry experts who are at the forefront of structuring these solutions and discussed the latest trends in capital raising and how structured liquidity solutions are being used by private markets managers to manage their portfolios.
Women in Fund Finance announced a Networking Boat Cruise event in connection with the Fund Finance Association’s 11th Annual Global Fund Finance Symposium in Miami, Florida. The cruise is scheduled for February 16, 2022 at 12 pm.