In case you missed it earlier this summer, here’s our updated guide to primers we’ve previously published in Fund Finance Friday.
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 Cadwalader's New York office, with a reception to follow. To register and learn more about both opportunities, please click here.
A common feature included in credit agreements is a limitation on the amount of the unfunded capital commitment of a single investor (or the aggregate unfunded capital commitments of a class of investors) that can be included in the calculation of the borrowing base on any date of determination. Such feature serves to protect a lender against too great of an exposure to a single investor (or class of investors) and better ensures that the borrowing base is comprised of a diversified pool of unfunded capital commitments. In the early stages of fundraising, the investor pool may be limited in number and largely comprised of a short list of anchor investors. The application of a concentration limit can significantly diminish the calculation of the borrowing base under these circumstances.
Cadwalader partner Jeff Nagle discusses the latest in LIBOR transition in another installment of FFF: Industry Conversations.
Looking to expand your professional toolbox? The Fund Finance Association’s podcast, "Career Conversations," can help you do just that. Listen to different industry leaders in each episode as they recount how they navigated their careers. These quick and convenient episodes highlight career mistakes, lessons learned, and advice for the "NextGen" of the fund finance industry. Regardless of where you are in your career, the invaluable takeaways from these episodes will help you hone the pursuit of both your personal and professional goals. Tune in here!
As many of you are already aware, Brickfield Recruitment’s long-anticipated Fund Finance Banker’s Compensation Report arrives next month. In the meantime, this article with market commentary on hiring in the NAV market just posted on Brickfield’s website and is a must-read for anyone operating in the space or considering a move towards NAV specialization. And register here to receive your PDF edition of the Brickfield Fund Finance Banker’s Compensation Report in September.
Tune in to the recent episode of Fund Fanatics for a hot take on the latest private market trends and forecasts with Mitchell Green, Founder of Lead Edge Capital.
We are very pleased to announce that associates Spencer Davies and Justin Larson have joined our Fund Finance team.
The fund finance market has experienced serious growth over the last few years. Fund borrowers are seeking more liquidity than ever in terms of the number of funds taking advantage of credit facilities as well as the sheer size of the facilities themselves. We have seen rapid growth in subscription line financings as well as a great deal of interest in other types of financings that allow funds to access liquidity − in particular, NAV loans (i.e., loans that are underwritten by lenders based on the fund borrower’s investment portfolio). NAV is hot and getting hotter.
Private credit funds are making their presence felt in the leveraged loan market. Recent transactions illustrate the scale direct lenders have achieved, enabling these managers to compete head-to-head with banks. Earlier in the month, a private lender group provided a $2.5 billion unitranche facility that facilitated Vista Equity Partners’ acquisition of Avalara Inc., the latest in a string of large-cap loan transactions that have been done away from banks.