This week Iron Road Partners published an Analytical Note on the cost allocation of fund finance commitment fees and related charges, such as unused fees, between a commingled fund and applicable co-investors. The note is available here.
Over the last 18 months, we’ve seen a sharp uptick in inquiries from U.S. banks about how to use capital relief trades to manage regulatory capital constraints. Here, we set out our responses to some of the frequently asked questions we’ve received on this topic. Look for a registration link in next week’s FFF for our upcoming webinar series on these transactions.
As we are moving further into the realm of Fund Finance 2.0 and the rise of the NAV facility, there has been a lot written about taking security over the equities of various types of Cayman entities, particularly Cayman exempted limited partnerships and Cayman exempted companies. Here we look at additional considerations when taking security over shares in a CayCo in cases where the register of members is maintained in a jurisdiction other than the Cayman Islands or the United States.
Find out the latest APAC Fund Finance market updates from the experts themselves at the upcoming virtual panel discussion hosted by the FFA's APAC Executive Committee on June 22 from 3-4 p.m. More info is here.
These are trying times for the old 60/40 portfolio. The Wall Street Journal this week highlighted a pivot among PE firms to court retail investors after firms have successfully convinced pension and sovereign wealth funds to up private market allocations. Rather than an across-the-board increase in high-net-worth investors, a greater retail presence may show up mostly in permanent capital vehicles, such as evergreen funds or BDCs, engineered specifically with individual investors in mind.
Investec examines how, despite the increased use of subscription credit facilities in private equity, there has been a stark drop in the average number of capital calls made per fund since 2015, according to recent data. Click here to read the full report, which includes: the industry trends potentially responsible for the decline in capital calls, how the use of subscription credit facilities has evolved, and predictions for the future of capital calls and subscription credit facilities.
Private Funds CFO this week published an article on the due diligence requirements of lenders in NAV facilities, available here.
Unquote published an article this week on Pemberton's entry into NAV financing. The subscription-required article is accessible here.
We are very pleased to welcome several new team members to our Fund Finance group and our firm. We look forward to their contributions as part of our growing practice.
This article looks at the distinguishing features of infrastructure funds from a credit perspective, their typical funding requirements, and the potential lessons for NAV facilities to private equity funds. While there remains some debate on the precise limits on infrastructure as an asset class, for the purpose of this article we will use infrastructure funds to refer to any fund established for the purpose of investing in a portfolio of assets comprising investments in PPP, energy (including renewables) and/or infrastructure projects that are characterised by their long-term revenues.