According to the Coller Capital Global Private Equity Barometer, a global survey on private market investors published last week, a third of North American LPs and 52% of APAC LPs believe public market volatility has made private equity more attractive on a relative basis. Other findings include: a significant share of LPs reporting that the denominator effect is likely to weigh on their private market allocations in 2023 and a growing interest from investors in private credit over public market debt. The survey is available here.
Brickfield Recruitment has just published its final major article of 2022, looking back at the year in fund finance from a recruitment perspective and looking ahead to 2023, with commentary from industry players on the lender, asset management and legal sides. The spike in compensation levels experienced in 2022 appears to have receded, but market uncertainty will present a different challenge. A tougher buy-side market in 2023 will mean opportunities for innovators and non-traditional participants.
PEI this week published a short article addressing LP perspectives on fund finance usage in the current market environment. The article is accessible here.
Since 2008, financial instruments starting with a “C” and ending with an “O” have been treated with suspicion. But should the same apply to CFOs? The main purpose of a CFO is to generate liquidity, and it's been suggested that it can obfuscate the risk of underlying assets.
Women in Fund Finance will ring in 2023 with a special New York event, “Private Equity to Entrepreneur,” featuring an evening of cocktails and conversation with Jenn Toyzer, co-founder and CEO of UME Plum Liqueur, who will discuss her career journey from investment banking to business founder. Wells Fargo Managing Director Michele Simons and Cadwalader's Leah Edelboim will serve as moderators. Click here for more info on the January 19 event.
Attorneys on Cadwalader's Fund Finance team have been promoted to partner, effective January 1, 2023. These accomplished attorneys have distinguished themselves through exceptional legal skills, outstanding client service and their consistent embodiment of Cadwalader's values.
We are pleased to welcome ESG finance and investment partner Sukhvir Basran to Cadwalader’s London office. Sukhvir advises a range of clients on ESG strategies, policies, frameworks, disclosure and reporting, ESG-related transactions and products, and the integration and alignment of ESG across investment processes. You can read our full announcement here.
2022 has been a remarkable year for the banking industry. Yields on interest earning assets stayed well ahead of funding costs to drive record gains in net interest margins. The lift from higher rates, combined with broad based loan growth, translated to record net income. For 2023, we expect consistent credit availability from bank lenders as fund finance becomes a net beneficiary of sagging loan demand and tightening credit conditions in other lending markets.
As remarkable as the year has been for banks, 2022 will be remembered in part for the continued ascent of private credit. The scale and significance of these non-bank lenders became clear this summer when private credit funds stepped in to close a number of multi-billion unitranche loans as banks retreated from the leveraged loan market.
We have been following a case that has been winding its way through New York federal courts for some time that players in the syndicated loan market have described as everything from “a potential game changer” to an “existential threat” to the syndicated loan market. The case in question is Kirschner v. JPMorgan Chase Bank, N.A., which is before the United States Court of Appeals for the Second Circuit.