Investec examines how, despite the increased use of subscription credit facilities in private equity, there has been a stark drop in the average number of capital calls made per fund since 2015, according to recent data. Click here to read the full report, which includes: the industry trends potentially responsible for the decline in capital calls, how the use of subscription credit facilities has evolved, and predictions for the future of capital calls and subscription credit facilities.
Private Funds CFO this week published an article on the due diligence requirements of lenders in NAV facilities, available here.
Unquote published an article this week on Pemberton's entry into NAV financing. The subscription-required article is accessible here.
We are very pleased to welcome several new team members to our Fund Finance group and our firm. We look forward to their contributions as part of our growing practice.
This article looks at the distinguishing features of infrastructure funds from a credit perspective, their typical funding requirements, and the potential lessons for NAV facilities to private equity funds. While there remains some debate on the precise limits on infrastructure as an asset class, for the purpose of this article we will use infrastructure funds to refer to any fund established for the purpose of investing in a portfolio of assets comprising investments in PPP, energy (including renewables) and/or infrastructure projects that are characterised by their long-term revenues.
COVID-driven market dislocation marked an inflection point in NAV origination, according to a recent guest editorial in Private Equity International. NAV financings moved materially higher in 2021 as funds sought to diversify funding sources and as fundraising continued to climb higher. The author cites an estimate from Augustin Duhamel of 17Capital pegging the market opportunity for NAV financing at $100 billion a year. The full write-up, "The Non-Darwinian Evolution of Fund Financing Vehicles," is available here.
NLC recently published a white paper discussing the benefits, risks and opportunities for institutional investors looking to invest in Capital Call (Subscription) Financing. The paper provides a complete overview of the Capital Call Financing landscape and why the strategy has been gaining strong momentum with institutional investors as an alternative to traditional Investment Grade fixed income. If you’re an institutional investor looking to read the full white paper, you can request it here.
The Drawdown this week published the second edition of its Fund Finance Tracker, setting forth the fund finance offerings of various creditors. Available here.
Luxembourg-based law firm Wildgen has launched the first issue of its new Fund Finance Magazine. The publication will cover industry-focused global and local trends through the unique lens of Luxembourg, a main jurisdiction for fund finance transactions. This inaugural issue features an intro from Wildgen’s Michael Mbayi and several guest contributions on timely topics for the fund finance market. Download the issue here.
Scott Aleali and Jeff Maier this week hosted an episode of Fund Fanatics featuring Justin Golden, a partner at Greatwater Opportunity Capital LLC. To watch, click here.