Moody’s Investors Service this week published a brief overview on capital call lending. Rather than ratings metrics, the write-up focuses on the role of capital call lending in the banking sector. Available behind a paywall here.
Do you know a Rising Star with an outstanding overall contribution to the Fund Finance industry? Nominate them here to be recognized at the 2022 annual "Rising Stars" award ceremony. The Fund Finance Association, in collaboration with NextGen, is eager to celebrate individuals with less than 10 years of fund finance experience who emphasize our industry’s career pillars, such as professional contributions focused on excellence in client service, diversity and inclusion, training and mentoring, networking and community service. Nominees can be nominated by anyone, any number of times, by July 29. Click here to nominate someone.
The Wall Street Journal this week published an article focused on how investors are addressing over-allocations to private equity using fund finance solutions like preferred equity and collateralized fund obligations as an alternative to reducing new commitments and sales in the secondary market. The subscription-required article is accessible here.
Scott Aleali and Jeff Maier hosted former Wake Forest and Charlotte Hornets star Muggsy Bogues this week on Fund Fanatics for a wide-ranging conversation, including his NBA career, overcoming adversity, leadership and culture, and his philanthropic activities. Watch the episode here.
Minority lender roles in transactions come up frequently and generally don’t warrant specific comment where there is a diverse lender base or established lender relationships, but sometimes the facility holdings are such that one or a small group of lenders can constitute the majority for the purposes of consents and amendments. The amount of focus relative hold amounts and voting power receive from the lender or lenders with the minority position will vary depending on a number of factors, including the type of deal, size of hold, whether the majority lender is a bank or fund lender, the relationship with and reputation of the sponsor, the relationship with the majority lender(s), the identity of the agent and the complexity of the transaction.
This article updates on sanctions as they relate to the Cayman Islands and some of the questions that Cayman funds are facing in practice.
Cadwalader's financial services team is hosting the first of a four-part series focused on capital relief trades, where attorneys will discuss the nuts and bolts of these transactions, which a growing number of U.S. banks are exploring to optimize regulatory capital and manage credit risk, including capital benefits, structural considerations and other legal and regulatory issues. The first installment, on Wednesday, June 22 at 1 p.m., will feature partners Jed Miller, Daniel Meade and Ivan Loncar on the topic: "CRT Overview and Regulatory Capital Basics." Please register here.
Luxembourg-based law firm Wildgen published its fourth episode of “Fund Finance Experts Talks” this week, featuring host Michael Mbayi and industry leader Sally Little, Head of Financial Institutions Sector Lending APAC at ING in Singapore. Michael and Sally discuss the timely topic of sustainable finance and understanding the client’s sustainable finance objectives, as well as the similarities and differences of the United Kingdom and APAC region fund finance markets.
If you are in London for the FFA European Symposium, be sure to RSVP to join Women in Fund Finance for a networking brunch on June 29 that promises to deliver exceptional connection and conversation.
With ESG considerations becoming increasingly prevalent in Fund Finance transactions, RBS International surveyed 125 influencers across the Alternatives Funds space to understand how the Science Based Targets initiative can be used to help provide a shared framework for the industry. The report's conclusions can be accessed here.