Yao Zhang has recently joined TriState Capital Bank in New York as the Vice President in Fund Finance, where she will continue to provide capital call financing and NAV-based lending to U.S.-domiciled alternative investment funds. Yao was previously at Deutsche Bank, UBS and BlockFi, focusing on financing solutions in the alternative fund space.
Happy New Year! As we begin the new year and look back at the developments in the fund finance market in 2022, and look forward to what 2023 has in store for us, one common theme is the continued increase in the use of NAV financing products, both in the U.S. and European markets. Several market participants noted (in our European market predictions article last month) the rise of the use of NAV facilities in 2022 and their expectations that this will continue in 2023 as funds look to manage their liquidity in the current environment and as funds, sponsors and lenders become more comfortable with these products.
We continue our alphabetical 50-state survey of sovereign immunity with our fourth installment in the series – this week summarizing sovereign immunity in Kansas, Kentucky, Louisiana, Maine and Maryland.
Private Funds CFO speaks with fund finance industry professionals, including Cadwalader’s Wes Misson and FFA chair Jeff Johnston, about some reasons for the increasing diversification of subscription line lenders to private funds in the article, “Big Banks Dial Back on Sub Lines, but Market Shows Signs of Resilience.”
No Limit Capital this week released its 2022 Annual Market Update, which can be requested from this link.
The liquidity squeeze you should have seen coming: Asian markets such as Hong Kong “squeeze” their way back into being global players in the fund finance space as other banks across the globe scale down due to capital constraints. Read more about how these key players are taking advantage of their competitors in PFCFO here.
Fi Dinh has been named Head of Fund Finance for the Asia Pacific (APAC) Region at MUFG Investor Services, where she will focus on expanding the fund financing business in APAC and supporting the overall growth of the global asset servicing and fund administration business. Click here to read the full MUFG press release.
Congratulations once again to our attorneys whose promotions are effective this week:
Patrick Calves, Partner – New York
Danyeale Chung, Partner – Charlotte
Leah Edelboim, Partner – New York
Mathan Navaratnam, Partner – London
James Hoggett, Special Counsel – London
2022 has been another incredibly successful year for European fund finance − a year that saw an unprecedented growth in non-bank lender participation, innovative product development (particularly in the NAV space) and a constant deal flow. All this while the macro-economic backdrop has, at times, seemed turbulent. With this in mind and with an eye on 2023, we are pleased to offer our annual poll of predictions from European industry players. We were curious to see what they had to say about 2023 given the current economic climate, so read on to find out for yourself.
Happy holidays from the Cadwalader London Fund Finance practice!
KBRA has come out with a recent forecast predicting that the private credit industry will be well positioned to navigate looming macroeconomic headwinds on the horizon. To read more on how structural protections, disciplined underwriting and comprehensive portfolio management have come together to create the perfect middle-market storm shelter, click here.