M&T Bank is hiring a Relationship Manager for Fund Finance to be based in New York. Candidates should contact Michael Sinclair for additional information.
On Monday, nearly 850 fund finance professionals from all over the world attended the FFA’s 7th Annual European Fund Finance Symposium at the Queen Elizabeth II Conference Centre in London. Discussions touched on areas such as liquidity and pricing, ESG, non-bank lenders and trends in NAV/sublines, as well as diversified collateral and risk management in 2023 and beyond (to name just a few). This week and next, we will summarize some of the key themes that we saw emerge during many of these discussions.
A search of the term “discretion” in virtually any credit agreement will yield numerous results. It is the word or words preceding that result that often is a point of much consternation. Many borrowers prefer the use of “reasonable,” which connotes the idea that an objective standard must be utilized in making a determination and such standard would be applied in a manner that is consistent with the standard a lender employs in exercising rights and remedies with other borrowers and loans of similar structure, size and complexity. Most lenders, on the other hand, favor the use of “sole” or “sole and absolute,” which implies that the lender has the ability to exercise a greater degree of preferential discretion in deciding whether to approve an action (or inaction). Preferences aside, what does this distinction really mean when a contract vests the right to make a determination in a party to that contract? That answer lies in a small body of case law that varies by jurisdiction.
Citizens Financial Group has announced that it has “significantly accelerated” its private banking growth strategy with the addition of approximately 50 new senior private bankers in Boston, Florida, New York and San Francisco.
All of those individuals and teams were formerly with First Republic, including a number of well-known names within the fund finance community. Joining Citizens will be, among others, teams led by Scott Aleali and Jeff Maier in New York and Sam Heshmati and Mike Franks in California.
You can read the full Citizens press release here.
FFA University is back and better than ever. The introductory 1.0 program is scheduled for September 21, while the more advanced 2.0 program will be held on October 5.
FFA’s Diversity in Fund Finance has organized an evening of networking and sake tasting for next Thursday, June 29 in New York.
The FFA and Corrs Chambers Westgarth will host an evening of networking in Sydney on Thursday, July 27 from 6-8:30 p.m. The program will be held at the Corrs Chambers Westgarth office in the Quay Quarter Tower at 50 Bridge Street.
Space is limited, so be sure to register here now. Additional information is available by emailing the FFA here.
While the majority of the fund structures hitting our desks in our subscription finance practice are traditional closed-ended private equity fund structures, we are seeing many more funds with open-ended features. Here we break down for you how these structures differ from a typical closed-end fund, why this structure is attractive to certain investors, and what lenders will want to be thinking about if they are putting together a financing for an evergreen fund.
In a March 16 hearing before the U.S. Senate Finance Committee, Treasury Secretary Janet Yellen explained that uninsured deposits would be guaranteed only following a determination that “the failure to protect uninsured depositors would create systemic risk and significant economic and financial consequences.” Not surprisingly, given this systemic risk qualifier, deposit uncertainty persists at funds and among institutional bank clients generally, and a move towards severing the lender-depository relationship by borrowing from one institution and maintaining the collateral accounts elsewhere continues.