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August 01, 2022
In the Private Funds CFO article, “LPAs continue to stand in way of NAV Financing,” Cadwalader Fund Finance partner Brian Foster shares various considerations for both borrowers and lenders in connection with the nascent realm of net asset value (NAV) financing structures:
“In the NAV market, loan facilities tend to fall into one of two buckets. The first consist of super low loan-to-value facilities to larger, more diversified funds, where leaders don’t take investment assets as collateral but instead underwrite the creditworthiness of the fund.”
The article also addresses important trends within the longer-established subscription line lending space, about which Cadwalader Fund Finance partner Tim Hicks says:
“There is an increased focus on making sure lenders are in compliance with any anti-terrorism laws, and particularly in relation to Ukraine and Russia. Funds and banks are being really careful to make sure any LPs that are part of the collateral pool are not subject to any EU or other sanctions.”
To read more, please visit the subscription-required article here: https://www.privatefundscfo.com/lpas-continue-to-stand-in-way-of-nav-financing/
