One of the most important aspects in arranging any fund finance transaction is structuring the security package. As anyone that has ever looked at a complete structure chart for a fund financing transaction knows, even a “simple” private fund structure typically involves a number of different entity types (limited partnerships, limited liability companies, etc.) organized in several jurisdictions (Delaware, the Cayman Islands, Luxembourg, etc.). Depending upon the type of facility (e.g., a subscription facility, a NAV facility or a hybrid facility), there may be collateral pledged to the lenders (or a security agent on their behalf) by one or more of these entities to secure the obligation to repay the facility.
For purposes of this article, we discuss the issues that arise in connection with perfecting a security interest by filing a UCC-1 financing statement (which is the most common method of perfecting security interests granted pursuant to NY law governed security agreements in fund finance transactions) with respect to an entity type that is somewhat less common in the fund finance space - trusts.
Save the date! We're thrilled to announce the 8th Annual Cadwalader Finance Forum will take place on Wednesday, October 23, in Charlotte.
Praxio Law & Tax recently published their Fund Finance Security Guide featuring Cadwalader partners Brian Foster and Patrick Calves.
The US Diversity committee is pleased to announce the next Boundary Breakers event. This DFF speaker series is aimed at fostering open conversations with senior leaders to give voice to unique issues and perspectives diverse professionals face, and how we can challenge ourselves to think outside established biases and stereotypes.
NAV loans are getting constant coverage in the press now. For those of us that spent years trying to direct focus to the potential of NAV lending, this is a welcome development. Admittedly, not all of the coverage is positive. It seems that there is a new article out every week with a negative take on NAV. As a result, we’ve been receiving a lot of calls from clients asking questions about the status and trajectory of the NAV loan market. We welcome the attention, positive and negative. A discussion on the merits of NAV lending is warranted, and the positives will, over time, win out over perceived negatives. In the meantime, we continue to see robust NAV loan activity, and we remain unequivocally bullish on this segment of the fund finance market. Let’s recount some of the reasons why:
If you’re planning that summer road trip or flight, maybe now is the time to line up the listening material. We surveyed our team for the best fund finance related podcasts, and here’s what we came up with. Let us know if you have favorites that should be added to the list.
The Fund Finance Association invites you to join them at an exclusive gathering of fund finance stakeholders in Luxembourg, showcasing the latest fund finance trends and introducing the activities of the FFA Diversity Committee.
In the first of our series “ESG in Fund Finance” articles, we summarise and examine the recent publication “A Guide to the Application of Sustainability-linked Loan Principles in Fund Finance” . . .