Earnings season for alternative asset managers is underway and should provide a window into the private market outlook for the second half. Earnings, of course, shine the spotlight on the large diversified platforms, a group that generally proves more resilient to challenging market conditions. The first data point came in yesterday when Blackstone reported Q2 fundraising, deployment, and realization totals that defied the broader industry slowdown.
New to fund finance or know someone who is? Here’s an updated guide to primers we’ve previously published in Fund Finance Friday.
Walkers this week broadcasted a podcast as part of its “We Talk Banking and Finance Series” hosted by Julia Keppe and Alice Wight on the Fund Finance Association’s European Symposium. To listen, click here.
NLC, an independent alternative Fund Finance lender, is looking to add a Senior Associate or a VP to its team.
Pacific Western Bank is looking for a Vice President to join its Fund Finance Group in the Boston office.
With communication avenues evolving and remote options only increasing, we certainly aren’t going back to the “good old days” of all-hands page flips and in-person closings. Combine that with Fax Rooms and FedEx deadlines, while certainly “old,” were those days even “good”? Arguably, no – traveling across the continent to closings lugging file briefcases while worried that your documents (on disk) might be destroyed by airport metal detectors isn’t something I want to go back to. Don’t worry. This isn’t a collection of “Back in my day, I walked to the courthouse uphill, both ways – in the snow” stories. I’m not interested in going back to the “good old days.” However, that isn’t to say that there weren’t some positives from those days that we should try and salvage or recreate that may make our jobs easier and even provide a smile later in our careers.
We are often asked by our clients: “What are you seeing? Anything interesting in the market on your side?” Our answer, as Cayman counsel, is more often than not that we are a ship floating in a tide and what they see as trends in the U.S. fund structuring and fund finance market will (or already have) washed up on our shores. One such trend that we continue to see progress in the market is in the confluence of the private equity and insurance sectors. This courtship is taking a variety of forms, but as private equity sponsors continue to look towards the vast reservoir of investable capital available in the insurance market, and insurers look back across the river at the stellar returns of such private equity sponsors, we are increasingly seeing the use of rated note feeders established as Cayman Islands limited liability companies (LLCs) or exempted limited partnerships (ELPs) to bridge the accessibility gap between insurers and private equity funds.
On July 11, the Alternative Reference Rates Committee (the “ARRC”) published a “Playbook” to assist market participants in transitioning their legacy LIBOR contracts to an alternative rate by June 30, 2023. Cadwalader's LIBOR transition team attorneys summarize here the steps that the ARRC recommends for the successful implementation of fallbacks in legacy LIBOR contracts.
Cadwalader’s financial services team hosted Part 3 of its four-part series on capital relief trades earlier this week. You can access webinar replays here:
- Part 1: CRT Overview and Regulatory Capital Basics
- Part 2: Unpacking Regulation Q: CRT Structuring
- Part 3: U.S. Legal and Regulatory Considerations
Registration details on Part 4 will follow.
ANZ is seeking both a Director and an Associate Director of Research & Analysis to cover the Funds sector within its Financial Institutions Group.
As interest rates rise and a potential recession looms, we’ve seen a flight to quality as new entrants seek to participate in our fund finance market. While most deals on our books have just one lender and one fund as borrower, multi-lender facilities have historically provided outsized loan commitments. To wit: of the nearly 900 new deals and rebooking amendments our U.S. fund finance team did last year, only 8% were syndicated on initial close. Yet of the almost $200 billion of lender commitments in our U.S. portfolio during that time, almost two-thirds came from syndicated credit facilities. A significant part of that disparity comes from new lenders joining deals after origination. We expect that trend to continue. This article assesses the elements, issues and hot topics for bringing new lenders into a transaction from the perspective of the borrower, the administrative agent and the incoming lenders.