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 -
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
A subscription credit facility is secured in part by the fund’s and its general partner’s (“GP”) right to call unfunded capital commitments from the fund’s investors, to receive capital contributions once funded and to...more
Recallable capital has become an increasingly common concept in subscription credit facilities. In this Legal Update, we explain the concept of recallable capital and its role in subscription credit facilities, as well as...more