On 25 July 2024, the Institutional Limited Partners Association ("ILPA") published guidance (the "Guidance") on the use of net asset value ("NAV") facilities. The Guidance specifically applies to private equity funds and does...more
8/9/2024
/ Borrowing Statutes ,
Consent ,
Documentation ,
Institutional Limited Partners Association (ILPA) ,
Investors ,
Lenders ,
LPAC ,
NAV ,
New Guidance ,
Real Estate Market ,
Special Purpose Vehicles
Debt finance plays a key role in all parts of the capital structure for private investment funds and their investors. In particular, the use of debt finance is an increasingly important component of secondary transactions,...more
In the middle of 2023, we conducted an informal, small-scale survey to gather insights from prominent non-bank lenders on their activity in the net asset value (NAV) lending market for the first half of 2023. We have expanded...more
“GPs should remain thoughtful about employing leverage on their GP-led secondaries transactions given the higher interest rate environment. However, there are a variety of financing products on offer from lenders which can be...more
We conducted an informal, small-scale survey during March to May 2023 to gather insights from prominent non-bank lenders on their activity over the past twelve months in the net asset value (NAV) lending market. In this...more
Private equity is resilient and has been innovative in how it invests a large amount of dry powder. However, as we enter an uncertain market, what are the biggest factors that will impact how private markets raise and form...more
Recent press coverage has brought to light allegations of fraud in relation to a subscription credit facility made available to a fund managed by a Florida-based private equity fund manager, JES Global Capital. The...more
For private investment funds with limited or no remaining uncalled commitments, net asset value (NAV) and hybrid credit facilities can provide a useful source of liquidity to support underperforming assets or allow funds to...more
10/7/2020
/ Capital Markets ,
Coronavirus/COVID-19 ,
Credit Agreements ,
Credit Facilities ,
EBITDA ,
Investment Funds ,
Investors ,
Liquidity ,
NAV ,
Portfolio Companies ,
Private Equity Funds
Use of subscription credit facilities by private funds has increased significantly since the last financial crisis. Now, as fund managers grapple with the liquidity challenges presented by COVID-19, there is more attention...more
The ongoing COVID-19 crisis is presenting fund managers with numerous challenges. One key challenge is to make sure that their portfolio companies have sufficient capital available to weather this particular storm. But how...more