Private equity sponsors and their funds benefit from the flexibility of revolving credit facilities and the ability to borrow significant amounts of capital on short notice. But that fast access to liquidity can quickly be paused if an Event of Default has occurred under the credit facility. This article provides a brief overview of why EODs matter, offers some examples of common EODs in subscription credit facilities and considers ways to help avoid them.
The Fund Finance Association’s annual symposiums bring together investors, fund managers, bankers and lawyers for education and networking within the fund finance market. The 13th Annual Global Fund Finance Symposium is just a few weeks away and will take place February 26-29, 2024 in Miami Beach.
Join Scott Aleali, Head of Private Equity Finance at Citizens Bank, and Jeff Maier, Senior Managing Director - Private Equity Finance at Citizens Bank, with special guest Calvin Marks, for the latest episode of Fund Fanatics!
Register now for the next session of the Fund Finance Series Webinar hosted by the Head of Banking & Finance at Praxio Law & Tax, Michael Mbayi: “2024 Market Perspectives.”
Michael will be joined by a panel of leaders in the industry, including Cadwalader's own Michael Hubbard, to do a recap of the activity of last year in America, EMEA and in the APAC region, to discuss the current global market trends and to give an outlook for 2024.
In celebration of International Women's Day, join Women in Fund Finance to raise money for Heifer International's Women Entrepreneurs 2 project, in Mexico, which will assist 1,000 families in the Yucatán Peninsula to close the living income gap by developing and/or strengthening women-led cage-free egg businesses that link to the market and strengthen the communities’ social capital.
While Chris van Heerden’s recent article "A Few Thoughts on the “Gloomy” Fundraising Outlook" gave some cause for optimism over the fundraising environment for 2024, for now on the ground we are continuing to see significantly longer lead times before funds hit their target size, even for top-tier sponsors.
In many cases that is resulting in the implementation of subscription facilities being delayed entirely, while in others sponsors are coming to the financing market with a much more concentrated LP-base than they typically would have done in the past. In response, we are experiencing something of a resurgence in lenders requiring investor letters by way of a credit mitigant to the heightened risk of lending against a single or small pool of investor(s).
As part of Global Legal Insight's launch of the 2024 edition of the “Pink Book,” Mike Mascia, Co-Head of Fund Finance at EverBank, catches up with GLI publisher, James Strode, for a video interview about the new edition and how he sees the year ahead shaping up for the global fund finance market, available here.