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The fundamental legal principles underlying the use of and the market practice of payoff letters.
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We periodically receive the question about the differences between guaranties, equity commitment letters and keepwell agreements in connection with fund finance credit facilities. Each can be used as a potent form of credit enhancement if specifically tailored to the particulars of a transaction. In this article, we cover not only the differences between each instrument and issues with their enforcement, but also provide concrete examples of recommended provisions to better ensure their effectiveness.
The Cayman Islands Private Fund Act was a uniquely 2020 occurrence but, with the turn of the year into 2021, Cayman Islands private funds have recently passed “Go” for the first time. As you’d expect, none of them will get to collect $200, but what do private funds need to do to remain compliant with their core responsibilities under the PF Act? And can compliance be checked or verified by lenders?
Please join Women in Fund Finance (WFF) for either (or both!) of their upcoming panels on ESG investing.
Scott Aleali and Jeff Maier’s "Fund Fanatics" kicked off its second season with an interview of Gregg Myers, Managing Director of Global Infrastructure Partners. Myers, Aleali and Maier discuss the benefits of a credit fund facility that utilizes both committed and uncommitted lines of credit, and, of course, the NFL playoffs. Check it out here.
Keenan McBride has been promoted to Executive Director at Morgan Stanley. He works in the Securitized Products Group of Morgan Stanley's Fixed Income Division, covering subscription finance, and is based in New York.
Kennedy Maker, who also works on subscription finance at Morgan Stanley, was promoted to Associate.
As we look to what the future holds for our industries in 2021, we reflect on 2020 and how it will be remembered for the year that a global pandemic resulted in the crushing of so many businesses and for countless human tragedies. But amidst the chaos and devastation, the fund finance and private markets quickly adapted to the changing work environment, and lenders worked to design innovative liquidity products and not just survived the pandemic but rose to the challenges it presented with resilience and innovation. In a short period of time, we’ve seen the fund finance market grow and evolve rapidly to cater for the increased and varied demand. We anticipate that 2021 will be a year of further growth and innovation in the fund finance industry. For this edition of Fund Finance Friday, we spoke to many of the major participants in Europe to gauge their views on the key themes and developments they expected to see in the fund finance and private markets in 2021.
Chad Stackhouse has joined Cadwalader’s Fund Finance practice as a partner in our Washington, D.C. office. He joins from Troutman Pepper, where he led the firm’s Fund Finance practice and was a member of the Technology and Venture Lending practice section.
Use of NAV facilities is on the rise, particularly with mid-sized funds that hold seasoned assets, according to a recent Bloomberg article. Quoting Cadwalader partner Brian Foster, the article points out that fund-level NAV facilities can be a more flexible and cost-effective alternative to portfolio-level financings.
Private Debt Investor has opened voting for its Fund Financier of the Year (Americas) Award this week. Congratulations to the four finalists: 17Capital, Crestline, Fund Finance Partners and Macquarie Credit Markets.
Please join Women in Fund Finance on Thursday, January 14 at 3 p.m. GMT/10 a.m. EST for a conversation about "Career Change – The Big Decision." This event will feature three panelists discussing their remarkably different experiences with career change, and guests will have the opportunity to discuss their own experiences. Panelists include Dee Dee Sklar, Strategic Advisor 17Capital, Cerberus Operations & Advisory Company, Tealbook; Sarah Lobbardi, Founder of Avardi Partners; and Shelley Morrison, Senior Investment Director, Aberdeen Standard Investments.