Coller Capital’s recently released Global Private Capital Barometer included a few notable takeaways for fund finance lenders that suggested the fundraising market could be broadening and capital circulation improving. Here are a few specifics:
Side letters have gone through a massive and largely unspoken transition over the last four to five years. From a position where a few investors in a closing might have quite short side letters dealing with niche issues we are now at a point where it is not uncommon to see the vast majority of investors in a closing have the benefit of negotiated side letter protections in side letters that can extend to upwards of 20-30 pages.
This week, the U.S. Court of Appeals for the Fifth Circuit vacated the private fund advisor rules adopted by the United States Securities Exchange Commission. The Final Rule imposed significant regulatory requirements on advisors to private equity funds, hedge funds and other private funds. It represented a significant expansion of the SEC’s power to regulate private fund advisers and investors and, according to the decision, compliance with the Final Rule would cost the private funds market $5.4 billion and require millions of hours of employee time.
Register now to save your spot for an evening of networking with your fellow industry participants. The event includes a panel discussion spanning industry viewpoints, all while enjoying light beverages and bites.