Debevoise & Plimpton LLP this week released an article spotlighting borrower-friendly trends that have emerged in the expanding fund finance market.
Private Equity International Article on Fund Finance
On January 29, Private Equity International published an article, titled “Fund finance is here to stay.” The premise of the article is that the fund finance markets continue to be busy and that rising interest rates have not created headwinds for facility demand.
PitchBook this week highlighted the “fundraising arms race,” or, in other words, the rush by managers to capture share in what continues to be a robust capital raising environment. Time to market between fund vintages from the same manager appears to be shortening. Along with this, managers may be feeling pressure from LPs to deploy capital more quickly. We highlight recent research on this point.
Cadwalader invites you to join us for cocktails and hors d'oeuvres at Scarpetta at the Fontainebleau Miami Beach from 8 - 11 pm on Sunday, March 24 to kick off the 9th Annual Global Fund Finance Symposium.
We received the same question multiple times last week: How was the fund finance market up so materially in 2018 while fund formation data from Preqin was down? While fund formation is, of course, the lifeblood of fund finance and both the number of funds closed in 2018 (1,733, down 28% from 2017) and aggregate capital raised ($757 billion, down from $925 billion in 2017) were down last year, there are a host of contributing factors explaining the discrepancy.