Credit Support in Fund Finance: Documentation and Enforcement
Recording of a 90-minute premium CLE webinar with Q&A
This CLE webinar will examine three types of credit support packages that lenders may consider when lending to a private investment fund (Fund). The panel will discuss the credit support features of unfunded equity capital commitments of limited partners (capital commitments), a guaranty and an equity commitment letter (ECL), and how they fit into the private investment fund financing structure.
Outline
- Forms of credit support in fund finance
- Unfunded capital commitments
- Guaranties
- Equity commitment letters
- Comparing capital commitments, guaranties, and ECLs
- Enforcement of credit support in fund finance
- Unfunded capital commitments
- Guaranties
- Equity commitment letters
- Comparing capital commitments, guaranties, and ECLs
Benefits
The panel will review these and other relevant issues:
- How can capital commitments be used as credit support as opposed to the more frequent use as collateral in connection with a subscription backed credit facility?
- What are the differences between a guaranty and an ECL?
- If necessary, how does the lender enforce capital commitments, guaranties, and ECLs to repay a credit facility?
Faculty

Kristin M. Rylko
Partner
Mayer Brown
Ms. Rylko is a partner in Mayer Brown’s Banking & Finance practice. She represents a variety of financial... | Read More
Ms. Rylko is a partner in Mayer Brown’s Banking & Finance practice. She represents a variety of financial institutions, funds and corporate borrowers across a range of lending transactions, with a particular emphasis on the financing of investment funds.
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Michael D. Kwasigroch
Attorney
Mayer Brown
Mr. Kwasigroch is a member of the Banking & Finance practice. He focuses his practice on representing financial... | Read More
Mr. Kwasigroch is a member of the Banking & Finance practice. He focuses his practice on representing financial institutions, investment funds and corporate borrowers in a variety of secured and unsecured finance transactions, including subscription-backed credit facilities, bi-lateral loans, bridge loans, acquisition financing arrangements and asset-based financings.
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Vincent R. Zuffante
Attorney
Mayer Brown
Mr. Zuffante represents domestic and international financial institutions, investment funds, and corporate borrowers... | Read More
Mr. Zuffante represents domestic and international financial institutions, investment funds, and corporate borrowers across a range of secured and unsecured financing transactions including subscription-backed credit facilities, management fee facilities, general partner and partner loan programs, bi-lateral and syndicated loans, bridge loans, first lien / second lien transactions, multicurrency financings, and acquisition financing arrangements.
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