An express third-party beneficiary provision running in favor of a lender in a fund’s limited partnership agreement (an “LPA”) is helpful for subscription credit facilities. It bolsters the rights and remedies of a...more
6/3/2025
/ Beneficiaries ,
Contract Terms ,
Creditors ,
Investment Funds ,
Lenders ,
Limited Partnership Agreements ,
Limited Partnerships ,
Loans ,
Private Equity ,
Private Equity Funds ,
Third-Party
EXECUTIVE SUMMARY -
Participations are increasingly being utilized in the finance industry, serving as a mechanism for lenders to manage credit exposure, diversify loan portfolios, optimize capital utilization, and...more
Subscription credit facilities, commonly referred to as “sub-lines” or “capital call facilities,” are a cornerstone of private equity finance. These facilities are secured by a bespoke collateral package that protects lenders...more
EXECUTIVE SUMMARY -
Subscription credit facilities rely on the obligations of investors to a private investment fund (“Fund”) to contribute their capital commitments to the Fund when called. From a subscription credit...more
2/26/2025
/ Breach of Contract ,
Capital Markets ,
Consumer Financial Products ,
Contract Terms ,
Credit Facilities ,
Creditors ,
Financial Services Industry ,
Investment Funds ,
Investors ,
Lenders ,
Limited Partnership Agreements ,
Loan Agreements ,
Loans ,
Private Equity ,
Private Equity Funds ,
Risk Management
EXECUTIVE SUMMARY -
Section 23A of the Federal Reserve Act and its implementing regulation, Regulation W, impose restrictions on banks concerning “covered transactions” with their affiliates. With the increasing...more
EXECUTIVE SUMMARY -
In this Legal Update, we provide suggestions for junior finance professionals new to the fund finance market and offer practical suggestions for beginning their careers with a solid foundation....more
12/12/2024
/ Banks ,
Capital Markets ,
Career Development ,
Consumer Lenders ,
Financial Institutions ,
Financial Markets ,
Financial Services Industry ,
Financing ,
Investment Funds ,
Loans ,
Professional Development ,
Relationship Development
EXECUTIVE SUMMARY -
Fund sponsors may offer their employees and other investment professionals an opportunity to invest in its funds through a co-investment program, which a lender may partially finance....more
Executive Summary -
Over the last several years, a need has arisen in the fund finance market, which caters to private equity, venture capital, family offices, and other investment funds (“Funds”) and their sponsors, for...more
8/29/2024
/ Asset Management ,
Capital Markets ,
Credit Facilities ,
Financial Institutions ,
Financial Services Industry ,
Financing ,
Investment ,
Investment Funds ,
Investment Portfolios ,
Loans ,
NAV ,
Private Equity ,
Private Funds ,
Securities ,
Venture Capital
On May 22, 2024, the US federal banking regulators finalized a new set of reporting requirements for bank loans and commitments to fund finance facilities, private credit lenders, and other nonbank financial entities.This...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
On December 27, 2023, the US federal banking regulators proposed reporting requirements for bank loans and commitments to the fund finance sector. This change reflects not only the rapid growth in this sector but also the...more