The LSTA published an Excel version of its ESG borrower due diligence questionnaire, the latest step in an asset manager ESG diligence initiative that started in June 2021 as a joint project of the Loan Market Association (LMA), the Loan Syndications and Trading Association (LSTA) and the European Leveraged Finance Association (ELFA). The questionnaire is intended to streamline the due diligence process and to generate readily comparable data. The questionnaire and further information can be found here.
The Fund Finance Association is thrilled to announce the expansion of FFA University, which now includes two fund finance courses. FFA University 1.0 will be the traditional program, designed for those relatively new to fund finance or seeking a refresher, and will be held virtually on September 21. FFA University 2.0 is a more advanced, in-person program for those seeking greater depth and networking opportunities. Class 2.0 will take place on October 6 in New York City in Cadwalader's New York office, with a reception to follow. To register and learn more about both opportunities, please click here.
Working with Cayman, Guernsey, Ireland, Jersey or Luxembourg funds? WFF brings you “Back to School: Offshore Structures and Fund Financing ‘101’”, a panel discussion scheduled for Wednesday, September 21.
Jeff Diehl, Managing Partner of Adams Street, penned a special report in Financier Worldwide, providing a timely perspective on the link between public and private market valuations.
This article continues our prior discussion of the risk of “bad acts” by a borrower in certain NAV loan structures. For our purposes, NAV loans are loans to alternative investment entities (e.g., private equity funds, secondaries funds, hedge funds, funds of hedge funds, pension funds and family office vehicles) that are underwritten, either on a secured or unsecured basis, by the value of the entity’s investments. Even in secured NAV loan facilities, rather than a direct pledge of the underwritten assets for the financing (i.e., the fund’s portfolio of investments), lenders typically will only receive a pledge of the management and economic interests in one or more controlled subsidiary holding vehicles (“HoldCo”) that hold the investments (i.e., an “indirect pledge” of the investments). As a result, the borrowers typically maintain complete control over the assets that the lenders are underwriting.
The fundraising outlook has become more complicated in recent months. No question, year-to-date data looks good. PitchBook, for example, reports that 191 U.S. PE funds raised $176 billion in the first half, annualizing ahead of last year’s full-year fund value raised of approximately $340 billion. More broadly, global private capital raised in the first half totaled $645 billion, according to Preqin data, which, while lower than in 2021, sets the industry up for another trillion-dollar-plus year. Those numbers, however, are in the rearview mirror at this point, and a host of factors are clouding the forward outlook.
Private Funds CFO interviewed industry leaders Anastasia Kaup of Fund Finance Partners, Vicky Du of Standard Chartered, and Katie Cotterell of Bridgepoint Credit on the rise of ESG-linked fund financing. You can access the article here.
Women in Fund Finance will be hosting a fireside chat with Gretchen Carlson and Julie Roginsky, the founders of the "Lift Our Voices" organization. The event will take place in New York City on September 13 and will specifically focus on discrimination and harassment in the workplace. Gretchen and Julie will also discuss the work they are doing to ban NDAs and forced arbitration clauses around the country. To register and learn more about the upcoming event, please click here.
Walkers and MUFG Investor Services have issued a joint report on ESG trends in the European fund finance market. Spurred by legislation and investor demand, ESG considerations are focusing asset managers’ investment decisions towards sustainable finance in the EU. This type of investing aligns the borrower and lender towards the common goal of achieving measurable positive objectives. Though accompanied by increased disclosure requirements, ESG fund finance has created opportunities for lenders to offer exciting new products. To learn more about ESG fund finance in the EU, please click here.
Be sure to save the date − Tuesday, October 25 − for Women in Fund Finance's inaugural panel and networking event in Charlotte, North Carolina. Additional details regarding topics, panel details and agenda will follow.