Cascading pledges are frequently used in subscription finance to avoid legal impediments, avoid tax implications and mitigate prohibited transaction risk under the Employee Retirement Income Security Act of 1974, as amended...more
EXECUTIVE SUMMARY -
When contract language is ambiguous and the court is tasked with finding the intended meaning, interpretation principles – such as “course of performance” – may be used. But did you know this principle...more
4/9/2025
/ Borrowers ,
Breach of Contract ,
Contract Disputes ,
Contract Interpretation ,
Contract Terms ,
Dispute Resolution ,
Financial Services Industry ,
Financing ,
Lenders ,
Uniform Commercial Code (UCC) ,
Waivers
EXECUTIVE SUMMARY -
Cash control provisions are critical features of any subscription credit facility, safeguarding lenders’ primary repayment sources while also potentially impacting the Fund’s cash management operations....more
EXECUTIVE SUMMARY -
Net Asset Value ("NAV") credit facilities are lending arrangements underwritten on the borrower’s portfolio of investments, where the amount available for borrowing is based on the value of such...more
Executive Summary -
Net Asset Value (“NAV”) credit facilities are a tool that borrowers may use to access financing based on the value of their underlying investment portfolio. The users of these facilities are generally...more
8/2/2024
/ Borrowers ,
Collateral ,
Credit Facilities ,
Financial Institutions ,
Financial Services Industry ,
Financing ,
Investment Funds ,
Investment Management ,
Investment Portfolios ,
Lenders ,
NAV ,
Private Equity Funds ,
Restrictive Covenants ,
Securities
Net Asset Value ("NAV") credit facilities are lending arrangements underwritten on the borrower’s portfolio of investments, where the amount available for borrowing is based on the value of such underlying portfolio...more
EXECUTIVE SUMMARY -
In the evolving landscape of the subscription credit facility market, the introduction of fraud allegations by an investor against a fund as a new exclusion event marks a pivotal shift....more
With new banking rules on the horizon for financial institutions, lenders are looking for new strategies to bolster lending capacity and accommodate debt issuances. One such option is term debt....more
1/24/2024
/ Basel III ,
Borrowers ,
Credit Agreements ,
Debt ,
Financial Institutions ,
Financial Services Industry ,
Financing ,
Investment Funds ,
Lenders ,
Loans ,
Special Purpose Vehicles
For loans primarily secured by a cash flow stream, subscription facility lenders heavily depend on collateral accounts as a key element of the security package. In this Legal Update, we delve into why subscription facilities...more