Bank earnings season kicks off in less than a week when three banks, all active fund finance lenders, report on July 14. Revenue growth has become more difficult to come by with mortgage originations slowing into rising rates, investment banking fees likely meaningfully lower, and asset management income also down due to declines in equity and fixed income prices.
The Fund Finance Association this week followed up on last week’s 6th Annual European Fund Finance Symposium requesting feedback via an event survey, available here. FFA additionally released an online version of the available slides from the Preqin presentation (click here) and an online copy of Global Legal Insights’ Fund Finance 2022 Edition (click here), as well as photos from the symposium (click here).
Private Funds CFO this week published an article coming off of the FFA’s European Fund Finance Symposium in London last week that covers the varying use cases by sponsors with NAV loan proceeds. The subscription-required article is accessible here.
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Private Funds CFO writes about the greater participation of private credit funds, insurance companies and other non-bank lenders in the fund finance market, pointing to a real-time poll taken during last week’s FFA European Fund Finance Symposium. The subscription-required article is accessible here.
ANZ is seeking both a Director and an Associate Director of Research & Analysis to cover the Funds sector within its Financial Institutions Group.
We have recently been fielding a number of questions from our lender clients on the application of certain investor side letter provisions on the collateral package that secures the repayment of a subscription credit facility. A typical collateral package for subscription credit facilities consists of the fund’s limited partners’ unfunded capital commitments, capital contribution proceeds, and the general partner’s right to call capital from the limited partners. It is common for investors to enter into side letters, which are separate written agreements with the fund which amend, supplement, and alter the terms of the investors’ rights and obligations under its limited partnership agreement with the fund. These changes agreed to by the fund in a side letter may have material implications on a lender’s subscription credit facility. Here we take a look at certain side letter provisions that impact a subscription credit facility, how these provisions operate, and how lenders look to mitigate the risks associated with the consequences of the side letter provisions.
The Fund Finance Association European Symposium was held this week in London, bringing the industry together in Europe for the first time since 2019. The event was a tremendous success, with a packed agenda spanning three days from the opening reception on Monday through to the conclusion of the symposium with the Women in Fund Finance Networking Brunch on Wednesday morning.
Cadwalader’s financial services team will host the third part of its four-part series focused on capital relief trades on July 13. Part 3, titled “U.S. Legal and Regulatory Considerations” and led by partners Jed Miller, Daniel Meade and Ivan Loncar, will look at: Securities Law (Disclosure); Risk Retention; Tax; Swap Regulation; Commodity Pool; Insurance Regulation; Volcker Rule; Regulation W; and the Banking Holding Company Act.
You may register here for the July 13 (1-2 p.m.) webinar.
You may also view replays of Parts 1 (“CRT Overview and Regulatory Capital Basics”) and 2 (“Unpacking Regulation Q”) of the webinar series.
Private Funds CFO provides initial highlights from the packed Fund Finance Association European Symposium. Non-bank NAV lenders expect to benefit from higher rates, insurance company inflows, NAV/preferred equity hybrids and more, reports PFCFO. Full news here.