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Last week, Cadwalader partnered with Fitch Ratings to host the inaugural Capital Call Securitization Conference at our New York office. The event convened industry leaders and experts for an afternoon of dynamic conversations exploring the latest trends, challenges and opportunities shaping the capital call securitization market.
Read on for key takeaways from the panels.
Articles
We are now more than a full quarter into 2025, and it has been a very busy start to the year for the CWT fund finance practice, thanks in part to a busy quarter for secondaries fund finance deals. This is on the back of an important year for the product. The private equity secondaries market continued its steady evolution in 2024 in a way that was both familiar and transformative. Familiar, because the themes of recent years—liquidity constraints, innovation in deal structures and the rise of GP-leds—continue to dominate conversations. Transformative, because the numbers and trends coming out of 2024 suggest that secondaries are no longer just a reactive asset class. These trends have continued through the first quarter of 2025. Once viewed as a niche liquidity solution, secondaries have now become a proactive strategy in their own right, as secondaries funds represent some of the largest fund launches in recent years and secondaries products are no longer used just to manage exposures but a critical asset class used to pursue strategic opportunities across market cycles.
Join fund finance partners Patrick Calves and Leah Edelboim, and securitization partner Skyler Walker, who will be speaking at the ABA Business Law Spring meeting taking place April 24th - 26th in New Orleans.
Bayview Asset Management, a leading investment management firm with a 30-year history investing across asset-based credit markets, recently announced the launch of the firm’s Fund Finance investment business.
The term “boilerplate” originates from the printing industry, where “boilerplate” referred to metal plates with standardized text used for newspapers and other publications. In legal documents and contracts, boilerplate refers to standard clauses or sections that are common to most agreements and address general terms and conditions, such as dispute resolution, commencement, venue, choice of law, confidentiality, indemnification, etc.
When thinking about topics for Fund Finance Friday, the best source of content is most often the questions and issues that arise in day-to-day discussions and negotiations. The idea for this article popped up recently during a negotiation of a credit agreement and impacted a boilerplate section that doesn’t get discussed as often as some others. In this situation, the borrower was particularly concerned about the lender directly contacting their investors in the normal course (i.e., other than during an enforcement scenario). The usual assurances that the lender would not randomly contact investors during non-enforcement failed to alleviate the borrower’s concerns.
As a result, the lender agreed to modify the typical standstill and power of attorney language to specifically state that the lender would not contact investors outside of enforcement. Issue resolved? We thought so. However, as drafts were exchanged, it became clear that the borrower sought to not only have the lender affirmatively state that it would not contact its investors, but also wanted recourse against the lender should the no-contact agreement be violated – regardless of the circumstance.
Join the ABA Business Law Spring Meeting in New Orleans April 24th - 26th where the magic of the Big Easy meets the world of business law.
Yesterday, Cadwalader, in partnership with Fitch Ratings, hosted the first-ever Capital Call Securitization Conference at our New York office. The event brought together industry leaders and experts for an afternoon of insightful discussions on the latest trends and opportunities in the capital call securitization market.
The intersection of fund finance and securitization is an intense focus of the fund finance industry. So much so that just yesterday, Cadwalader hosted a first-of-its-kind Capital Call Securitization Conference in our New York office to an absolutely packed house with a standing room only crowd.
One theme that emerged at our cap call securitization conference yesterday is that the fund finance market will inevitably be shaped by bank balance sheet trends. After all, cash securitization and CRT are all about the flexibility they buy for lender balance sheets. We have been thinking about the broader context for the fund finance market for some time. In the attached report, we review big picture banking sector trends that help frame the context for fund finance. As always, we welcome your feedback.