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In the evolving fund finance market, lenders are constantly assessing ways to mitigate risk and enhance credit support in order to provide for the smooth operation of subscription-based credit facilities. One such credit enhancement that is experiencing a resurgence in this space is the parent comfort letter – a type of credit support in the form of an affirmation letter from an investor’s parent entity that provides lenders with additional assurances about such investor’s financial backing without creating direct recourse to the Parent. The question begs: Why would a lender accept a non-binding Comfort Letter over a stronger contractual obligation from the Parent?
In this article, we’ll explore how Comfort Letters impact fund finance facilities and distinguish them from other forms of credit enhancement tools.
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Securitisation of subscription finance facilities is en vogue in fund finance. We have written previously on this topic, offering a primer on capital call securitisations and a Q&A regarding a first publicly rated cash capital call securitisation for Fund Finance Friday readers.
In this issue, we will dive deeper into the securitisation of subscription finance.
We are thrilled to announce Cadwalader will be hosting the Capital Call Securitization Conference in conjunction with Fitch Ratings in our New York office on Thursday, April 3. Space is limited, RSVP now to save your spot!
Felicitas Global Partners' white paper argues that debt can be accretive to funds in certain cases - including controversial early distributions.
Read the Private Funds CFO article here.
As St. Patrick's Day was celebrated at the beginning of the week, Mason Hayes & Curran paraded a different set of vehicles this year: the various funds and other investment vehicles available to sponsors in Ireland.
Today is the conclusion of the 10th Annual Justice Served campaign – a special partnership among the legal profession and Food Bank For New York City that’s helped feed over 7 million New Yorkers since Cadwalader established the effort in 2015.
We need your help to hit our goal of funding 1 million more meals this year. DONATE HERE.
Join us – over 40 law firms and corporate legal teams – in donating the amount of your hourly billable rate (or anything you can contribute) in support of Food Bank For New York City and this critical effort in the fight against food insecurity.
The doctrine of purview under English law plays a critical role in determining whether amendments to a secured facility require reaffirmation or re-execution of guarantees and security. However, when it comes to adjustments in financial covenants, there is often a grey area which invites examination and nuance.
Just in time for St. Patrick’s Day, recent updates in Irish law bring important changes for fund finance participants. Lawyers at Arthur Cox and Mason Hayes & Curran have provided insights on key regulatory and structuring developments that could impact market practices.
As part of our Women’s History Month and International Women’s Day Celebrations, Cadwalader’s Women’s Leadership Initiative hosted its 9th Annual Girls in Finance Workshop in our New York and London offices.
Participants in both cities learned from a fantastic group of finance professionals (business and law) who volunteered to share their insights and experiences.
The Girls in Finance Workshop encourages high school girls to pursue careers in the finance sector by exposing them to elementary finance lessons and introducing them to successful women who have chosen that career path.
Thank you to the panelists who made the program such a success!