Practising Law Institute (PLI) hosted a live webcast earlier this week, titled “Trends in Fund Finance in Light of COVID-19,” as part of its “One-Hour Briefings” program. Cadwalader’s Wes Misson was joined by Ramya Tiller of Debevoise & Plimpton for a discussion of the effects of COVID-19 on fund financing.
The panelists identified tighter credit standards, increased use of qualified borrower joinders, higher pricing, and a rise in LPA amendments as among the current trends in subscription facilities, while emphasizing that credit performance and transition structures have remained strong throughout the crisis. The panelists also discussed how NAV facilities, preferred equity issuance, and fund restructuring have emerged as potential solutions to liquidity and capital concerns stemming from the pandemic. Slides from the webcast are available here.
