News & Analysis as of

Financing Lenders

Cadwalader, Wickersham & Taft LLP

Navigating Transfers January 2025 - Investor Transfers: Lender Considerations in an Everchanging Fund Finance Market

Although transfers by investors of their interests in a fund have always been a feature of subscription / capital call facilities, as of late, there has been a palpable uptick in investor transfers and this trend is set to...more

Greenbaum, Rowe, Smith & Davis LLP

A Review of the New Jersey Legislature’s Latest Amendments to the New Jersey Aspire Program

On December 19, 2024, the New Jersey legislature passed legislation amending multiple sections of statute governing the New Jersey Aspire Program, most importantly as it relates to the state purchase of unused tax credits....more

Alston & Bird

Missouri Enacts Commercial Financing Law

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What Happened? As we have previously apprised you, California, New York, Utah, Virginia, Georgia, Florida, Connecticut, and Kansas have enacted laws that require certain commercial financing “providers” to furnish certain...more

Cadwalader, Wickersham & Taft LLP

FFFalalala December 2024 - Shaping the Future of Fund Finance: How the LMA is Driving Change

The foundations for the Loan Market Association's ("LMA") fund finance work plans are now in place. Over the last months, LMA has thoroughly studied the market, listened to the voices of members and key stakeholders, and...more

Cadwalader, Wickersham & Taft LLP

FFFalalala December 2024 - Syndicate Diligence Considerations

Subscription credit facilities are a widely utilized product in the fund finance market, offering sponsors access to a reliable source of financing to bridge capital call and to lenders collateral backed by investors’ capital...more

Mayer Brown

UK Supreme Court Grants Permission to Appeal Landmark Case on Motor Finance Commission Payments and Disclosure Thresholds

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Last week the Supreme Court granted permission to appeal the Court of Appeal's decision in a case examining the permissibility of motor finance commission payments, which challenged traditional legal thinking relating to...more

White & Case LLP

Demand surge propels data center financing boom

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Despite macroeconomic uncertainty, data center financing has shown little signs of slowing down, as strong demand for data capacity gives lenders and investors the confidence to continue deploying capital into new projects - ...more

Conyers

Capital Call Securitisations: Fund Finance’s New Frontier…? An Offshore Perspective

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The recent closing by Goldman Sachs of its highly innovative and market leading US$475 million “capital call” securitisation of subscription credit lines has generated a lot of interest in both fund finance and structured...more

DLA Piper

Institutional Investor Newsletter: 2024 End-of-Year Roundup

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A recent trend in continuation vehicles involves traditional private equity sponsors serving as the “lead investor” in lieu of, or in addition to, more traditional secondary buyers and institutional investors. This expansion...more

Cadwalader, Wickersham & Taft LLP

Next Stop: Charlotte October 2024 - Underwriting Secondaries Deals

The market for financing pools of interests in private equity funds and private credit funds continues to sizzle, with new lenders joining the market and competition on pricing leading to a tightening of spreads for the most...more

Mayer Brown

How California’s Climate Disclosure Law Impacts Lenders in Subscription Credit Facilities

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EXECUTIVE SUMMARY - As part of its Climate Accountability Package, California passed a law last year that creates disclosure requirements related to greenhouse gas (“GHG”) emissions for thousands of U.S. companies,...more

Pillsbury Winthrop Shaw Pittman LLP

Lenders Beware: The Ponzi Scheme Presumption Can Trap an Unwitting Lender

A recent Ninth Circuit Court decision highlights a risk for lenders caught up in a Ponzi scheme. In its recent EPD Investment decision, the Ninth Circuit reaffirmed that (as a matter of law) upon finding the existence of a...more

Cadwalader, Wickersham & Taft LLP

Inside NAV Loans October 2024 - What’s in a NAV Loan?

The purpose of this article is to unpack the basic building blocks of what constitutes a NAV Loan to make sure that market participants have a basic understanding of what is in a NAV Loan and their key negotiated issues. As...more

White & Case LLP

Indonesian lending activity poised for rebound

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Macroeconomic uncertainty has impacted Indonesian debt markets in recent years. But, after a period of disruption, prospects for domestic and offshore debt issuances are brightening....more

Cadwalader, Wickersham & Taft LLP

Clearing the Hurdle, September 2024 - Hurdling Into the Borrowing Base

As was briefly touched upon in a prior Fund Finance Friday article “Borrowing Base/Coverage Ratio Approaches in Subscription Finance Facilities,” a subscription facility which uses the borrowing base approach looks at each...more

DLA Piper

Key Takeaways From the Fund Finance Association 2024 Global Leadership Summit

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The Pine Cliffs Resort hosted the FFA’s 2024 Global Leadership Summit this week where key players and leaders from across the industry gathered to discuss macroeconomic, geopolitical, policy, legal, regulatory and other...more

Cadwalader, Wickersham & Taft LLP

B(ack to School) September 2024 - Unlocking Liquidity With a Tranche B Facility

Liquidity solutions are a topic du jour in fund finance. With bank balance sheets somewhat restricted by macroeconomic concerns and risk-weighted asset regulations, fund finance borrowers and lenders have sought creative ways...more

Orrick, Herrington & Sutcliffe LLP

Legal Ninja Snapshot: Your Checklist for Convertible Loan Agreements in Germany

Convertible loan financings have become the go-to financing instrument in German venture capital for short-term and (bridge) funding on the fly. Most law firms, venture capital funds, business angels or related initiatives...more

Venable LLP

Missouri Tells Commercial Financing Providers to “Show Me” Disclosures

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Missouri is the latest state to enact a disclosure requirement for commercial financing, joining the growing number of states that have done the same. California, New York, Utah, and Virginia were the first states to pass...more

Cadwalader, Wickersham & Taft LLP

Behind the Scenes August 2024 - Conditions Precedent: Borrower Deliverables

The credit agreement for a subscription credit facility will list several conditions precedent that are required prior to the credit agreement becoming effective and/or the first extension of credit occurring thereunder....more

Ward and Smith, P.A.

The Perils of Over-Lawyering in Bankruptcy

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For a lender in bankruptcy, the best situation is to be an over-secured creditor, meaning the value of your collateral exceeds your debt.  A creditor in this exalted category can recover principal, interest (including...more

Cadwalader, Wickersham & Taft LLP

Going for Gold August 2024 - Credit Portfolio Finance – A Primer on Back-Leverage

The combination of increased regulatory pressure and additional investor demand for higher yield has seen numerous banks gradually displaced by private debt funds in the corporate lending sector (particularly for mid-market...more

Husch Blackwell LLP

Credit Risks Likely to Rise as 2024 Draws to a Close

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A strange confluence of geopolitical events, labor unrest, softening consumer demand, and supply-chain logistical issues could leave lumps of coal in the stockings of lenders this holiday season. The story begins in the Red...more

Mayer Brown

NAV Credit Facilities: The Spectrum of Collateral Structures

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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

Cadwalader, Wickersham & Taft LLP

Subscription Agreements 101 – Back to Basics July 2024 - Subscription Agreements

We have said it before – the “credit cornerstone” of a subscription credit facility is the limited partnership agreement (the “LPA”) – it is the primary contract, together with any side letters, governing the relationship...more

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