Global Legal Insights
Global Legal Group Ltd (Verlag)
978-1-83918-394-2 (ISBN)
These developments have cumulated in an inflection point in the market’s historical reliance on bank balance sheet funding. The next phase in fund finance is shaping up to be one where lenders select from a menu of options to bring in partner funding, participate risk through guarantees or CRT, and evaluate balance sheet strategy against securitization execution.
Transitioning to this new level of sophistication is likely to be demanding, but the net impact should be welcomed on all sides. For borrowers, a broader funding base suggests more consistent capital availability and structural flexibility. Lenders gain additional tools to dynamically manage exposure levels and optimize capital costs. And third-party financing and investing partners will welcome access to the fund finance risk-return profile and the opportunity to diversify into a new asset class.
In subscription land, we saw sequential origination growth in 2024 as the market continued to recover from the mid-2023 lows. The number of lenders and participants reached a new all-time high during the year and financing conditions eased, with fewer commitment-reduction and margin-increase amendments. Various projections for the fund finance market put us at a 2x rate for lender commitment growth by 2030, if not sooner. Diversification of product offerings (or the aforementioned convergence thereof) and the entrance of non-traditional lenders will get us there.
The year also saw further progress in large sponsors diversifying capital sources beyond closed-end funds. The sawtooth flagship closed-end fundraising cycle has always been an awkward fit for publicly traded platforms that report quarterly results. Insurance, retirement, wealth and other institutional channels not only allow for a wider array of inflows, but also allow for more consistent, predictable asset growth.
For fund finance lenders, the implication may be that incremental growth in private markets may be increasingly sourced outside of closed-end funds. Lenders that can attach at the asset level and present sponsors with a broader offering of NAV, back leverage, and capital markets offerings will be best aligned with the industry’s direction of growth.
Additionally, we may get help with the macro outlook and an improved fundraising environment for 2025. Easing financial conditions are translating to improved PE deal activity. Global central banks have pivoted to easing. Lower rate and accommodative financial conditions should support further acceleration in deal activity. Also the recent and decisive U.S. election outcome is positive for the overall business outlook – many are predicting accelerated growth with the primary support coming from deregulation and lower energy costs. This could be a further positive for PE transaction volume, especially for exits and distributions.
Things have never been more exciting and innovative in fund finance.
It is with this backdrop that we are pleased to present the ninth edition of Global Legal Insights – Fund Finance, affectionately known in the industry as the Pink Book. Cadwalader, Wickersham & Taft LLP is once again privileged to serve as the contributing editor. At this dynamic moment in the industry, we have again endeavored to provide a comprehensive practical guide for fund finance practitioners. As in prior editions, this volume begins with 31 product and market-oriented chapters and then shifts to 19 jurisdiction-specific update chapters.
We sincerely thank all the contributors for sharing the benefit of their experience and insights. We also thank Global Legal Group Ltd. for their continued support and partnership.
Introduction
Wes Misson
Cadwalader, Wickersham & Taft LLP
Industry Viewpoints
1Morganization: origins and evolution of private equity and fund finance
Dr. Mick Young
JPMorganChase
11The end of Fund Finance?
Mike Mascia
EverBank, N.A.
Expert Analysis Chapters
16NAV and hybrid fund finance facilities
Leon Stephenson
Reed Smith
29Collateral damage: what not to overlook in subscription line and
management fee line facility diligence
Anthony Pirraglia, Peter Beardsley & Richard Facundo
Loeb & Loeb LLP
41Derivatives at fund level
Jonathan Gilmour, Joseph Wren, Nicholas Baines & Nick Morgan
Travers Smith LLP
51Oh, what a sweet life it is with subscription facilities!
Kathryn Cecil, Jons Lehmann & Jan Sysel
Fried, Frank, Harris, Shriver & Jacobson LLP
60Fund finance in the secondaries context – liquidity breeds
financing needs
Katie McMenamin, Mimi C. Cheng & Edward Ford
Simpson Thacher & Bartlett LLP
68NAV facilities – the investor’s perspective
Patricia Lynch, Patricia Teixeira & Justin Gaudenzi
Ropes & Gray LLP
75Enforcement: analysis of lender remedies under U.S. law in
subscription-secured credit facilities
Ellen G. McGinnis, Richard D. Anigian & Emily Fuller
Haynes and Boone, LLP
94Use of preferred equity in private equity net asset value facilities
Meyer C. Dworkin, David J. Kennedy & Kwesi Larbi-Siaw
Davis Polk & Wardwell LLP
101Financing evergreen funds: the growth of individual investors in the
private equity secondaries market
Brian Foster, George Pelling, Michael Newell & John Donnelly
Cadwalader, Wickersham & Taft LLP
105Umbrella facilities: pros and cons for a sponsor
Richard Fletcher & Yagmur Yarar
Macfarlanes LLP
115Side letters: pitfalls and perils for a financing
Thomas Smith, Margaret O’Neill & John W. Rife III
Debevoise & Plimpton LLP
125Fund finance lending in Cayman, Luxembourg and Ireland:
a practical checklist
James Heinicke, David Nelson, Jad Nader & Laura Holtham
Ogier
138Assessing lender risk in fund finance markets
Robin Smith, Alistair Russell, Nick Ghazi & Holly Brown
Carey Olsen
152Fund finance meets securitisation
Richard Day, Blake Jones & Julia Tsybina
Clifford Chance LLP
160Fund finance facilities: a cradle to grave timeline
Bronwen Jones, Kevin-Paul Deveau & Brendan Gallen
Reed Smith
169Rated subscription lines: welcoming a new era of fund finance
Danny Peel, Charles Bischoff, Laura Smith & Adam Burk
Travers Smith LLP
179Bespoke ABF and ABS liquidity structures of Cayman Islands funds
Dr. Agnes Molnar & Richard Mansi
Travers Thorp Alberga
189NAV and holdco back-levering financings – practicalities of collateral
enforcement by asset class
Sherri Snelson & Juliesa Edwards
White & Case LLP
199Collateralised fund obligations
Christopher P. Duerden, Caroline M. Lee, Anthony Lombardi & Lindsay Trapp
Dechert LLP
211Innovative rated note structures spur insurance investments in
private equity
Pierre Maugüé, Ramya Tiller & Christine Gilleland
Debevoise & Plimpton LLP
220Financing secondary fund acquisitions
Ron D. Franklin, Jinyoung Joo & Allison F. Saltstein
Proskauer
228Any preference? Preferred equity as part of the financing toolkit
Ravi Chopra, Robert Emerson & Ed Saunders
Goodwin
237Fund manager M&A: finance considerations and trends
Matthew Bivona, Corinne Musa & Trevor Vega
Akin
244Understanding true leverage at the fund level: a European market and
sector approach
Michel Jimenez Lunz & Antoine Fortier Grethen
SJL Jimenez Lunz
252Institutional investors: the final frontier of net asset value-based finance
Charlotte Lewis-Williams, Ryan Moreno, Soumitro Mukerji & Mei Mei Wong
DLA Piper
257The fund finance market in Asia
James Webb Travers Thorp Alberga
Ian Roebuck Baker McKenzie
Benjamin Masson Natixis Corporate & Investment Banking
267Securing success: key considerations for account security in fund
finance transactions
Benjamin Berman, Jeremiah Wagner, Donald Cooley & Dan Marcus
Latham & Watkins
274Private credit trends impacting fund finance
Sarah Kessler, Daniel Durschlag, Mark Proctor & Allison Tam
Willkie Farr & Gallagher LLP
282Financing for continuation funds: a practical guide to market trends,
opportunities and issue spotting
Fiona Cumming & Parisa Clovis
A&O Shearman
Jurisdiction Chapters
289Australia
Tom Highnam, Rita Pang, Jialu Xu & Nick Swart
Allens
300Bermuda
Matthew Ebbs-Brewer & Arielle DeSilva
Appleby
308British Virgin Islands
Andrew Jowett & Johanna Murphy
Appleby
317Canada
Michael Henriques, John J. Oberdorf III, Kenneth D. Kraft & Tim T. Bezeredi
Dentons Canada LLP
324Cayman Islands
Simon Raftopoulos & Georgina Pullinger
Appleby
333England & Wales
Michael Hubbard, Samantha Hutchinson, Nathan Parker & Sukhvir Basran
King & Spalding International LLP
340France
Philippe Max & Meryll Aloro
Dentons
347Guernsey
Jeremy Berchem & Leona Maharaj
Appleby
356Hong Kong
James Ford, Patrick Wong & Natalie Ashford
A&O Shearman
368Ireland
Kevin Lynch, Ian Dillon, David O’Shea & Ben Rayner
Arthur Cox LLP
384Italy
Alessandro Fosco Fagotto, Edoardo Galeotti, Valerio Lemma & Giorgio Peli
Dentons
393Jersey
James Gaudin, Paul Worsnop, Simon Felton & Daniel Healy
Appleby
398Luxembourg
Vassiliyan Zanev, Marc Meyers & Maude Royer
Loyens & Loeff Luxembourg SARL
409Mauritius
Malcolm Moller
Appleby
416Netherlands
Gianluca Kreuze, Michaël Maters & Ruben den Hollander
Loyens & Loeff N.V.
425Scotland
Andrew Christie, Dawn Reoch & Ruaridh Cole
Burness Paull LLP
432Singapore
Jean Woo, Danny Tan, Tao Koon Chiam & Hanyin Huang
Ashurst LLP
440Spain
Jabier Badiola Bergara & Adelaida Torres Rovi
Dentons
448USA
Jan Sysel, Duncan McKay & Yvonne Ho
Fried, Frank, Harris, Shriver & Jacobson LLP
| Erscheinungsdatum | 05.02.2025 |
|---|---|
| Reihe/Serie | Global Legal Insights - Fund Finance ; 9 |
| Verlagsort | London |
| Sprache | englisch |
| Maße | 153 x 246 mm |
| Themenwelt | Recht / Steuern ► Allgemeines / Lexika |
| Recht / Steuern ► EU / Internationales Recht | |
| Wirtschaft ► Betriebswirtschaft / Management ► Finanzierung | |
| ISBN-10 | 1-83918-394-2 / 1839183942 |
| ISBN-13 | 978-1-83918-394-2 / 9781839183942 |
| Zustand | Neuware |
| Informationen gemäß Produktsicherheitsverordnung (GPSR) | |
| Haben Sie eine Frage zum Produkt? |
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