The past year has seen a challenging environment for the balance sheet of many banks. The ability for a bank to sell and assign their commitments in fund finance facilities has therefore increased in importance. In the Syndication Update panel in Miami, panelists convened to discuss the latest trends in these efforts.
The 2023 edition of the Fund Finance Association’s annual conference was again filled with interesting insights from a wide range of industry participants and leaders. The panel titled “Market Evolution & Industry Perspectives” was no exception, bringing together a panel which included bankers, attorneys and fund managers.
One distinct and lasting memory that I have of law school is the feeling that I was being let in on a secret. Through the (hundreds of) cases that we read and our other coursework, we were learning about how the world really worked. At the FFA's Symposium in Miami last Thursday, I got that same feeling of being let in on a secret about the way things really work at one of its final panels: “A Geopolitics Discussion with Pippa Malmgren.”
As the private equity and fund finance markets continue to expand with new, innovative products, collateralized fund obligation transactions, or CFOs, are becoming increasingly popular. A panel of experts discussed the nuances of constructing CFOs, from the asset-based lending nature of the rated notes that underpin these deals to the complexity of cash flows, liquidity needs and legal considerations.
In Case You Missed It: A re-post from last week's FFF issue.
Coming off of the close of a badly bruised broadly syndicated loan market in 2022, it is no surprise that the global Fund Finance Association kicked off its 12th annual conference in Miami with a conversation with the “Titans in Finance” − Jonathan Bock, Senior Managing Director, Co-CEO of BCRED and BXSL, Head of Market Research, Blackstone Credit; Ken Kencel, President and CEO of Churchill Asset Management; and Art Penn, Founder and Managing Partner of PennantPark Investment Advisers. The panel was moderated by Jocelyn Hirsch, Partner at Kirkland & Ellis, and Nick Mitra, Managing Director at Societe Générale.
Fitch Ratings has released a report, Subscription Finance: A Primer, which covers common queries from market participants, including the effect of subscription facilities on fund cash flows and performance metrics, key features of subscription facilities, and market developments and historical performance. To access the report, click here.
Women in Fund Finance (WFF) U.S. is hosting a virtual panel on “Navigating ESG Communications: Strategies for Challenging Times” on Tuesday, February 28 at 11 a.m. EST. The panel will focus on ESG data, disclosure, and ratings/scoring and will explore how different types of data may be used for risk analysis/mitigation, strategic planning/value creation and stakeholder engagement/communication. Click here to register and for the speakers list.
Let’s toast to the hardworking women of the Fund Finance industry! Raise your glass with the FFA and WFF at OXO Restaurant in London on March 8 at 6:00 p.m. for a networking reception in honor of International Women’s Day. Visit here for more info.
Check out the new episode of Simpson Thacher’s podcast, The Funds Channel, for an insightful and in-depth discussion of NAV facilities and their increased presence in the Fund Finance market.