Debt Finance Options for Real Estate Funds: Subscription, NAV, and Hybrid Facilities; Partner Lines of Credit

A live 90-minute premium CLE video webinar with interactive Q&A


Tuesday, May 25, 2021

1:00pm-2:30pm EDT, 10:00am-11:30am PDT

Early Registration Discount Deadline, Friday, April 30, 2021

or call 1-800-926-7926

This CLE webinar will examine debt financing options available to real estate investment funds, common structures and terms for these fund financing products, and the advantages and disadvantages of each. The panel will also discuss the relationship of fund finance to mortgage debt at the property level.

Description

The COVID-19 pandemic has had a severe negative impact on the commercial real estate market, presenting an opportunity for private real estate investment funds to invest in distressed real estate assets. For real estate funds, third-party debt financing can provide capital to take advantage of these investment opportunities, meet financing needs and achieve other objectives.

Fund financing products can take several forms, including: subscription credit facilities secured by the capital commitments of a fund’s investors; management fee lines of credit secured by the fees the fund manager receives for managing the fund’s investments; partner loan programs offered to fund investors or the general partner; net asset value (NAV) credit facilities secured by the fund’s investment portfolio; or hybrid credit facilities combining certain aspects of subscription and NAV credit facilities.

Each fund financing product has unique structuring attributes, and may be most appropriate depending on where the fund is in its lifecycle and the desired use of the financing proceeds.

Listen as our authoritative panel discusses various finance alternatives available to real estate funds, common structures and terms, and the features, advantages, and disadvantages of each.

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Outline

  1. Market Overview: real estate funds and opportunistic investing
  2. Common fund financing products and structures and terms, including:
    1. Subscription credit facilities
    2. Management fee lines of credit
    3. Partner lines of credit
    4. NAV credit facilities
    5. Hybrid credit facilities
  3. Considerations: including the interaction between mortgages and fund financing

Benefits

The panel will review these and other relevant issues:

  • What are some of the fund financing options available to real estate investment funds, and how do they interact with property-level (mortgage) debt?
  • How are fund financings structured and what are some of the benefits to real estate investment funds that utilize fund financing?

Faculty

Fargotstein, Max
Max W. Fargotstein

Attorney
Duane Morris

Mr. Fargotstein represents both lenders and borrowers in a wide variety of debt financing transactions including...  |  Read More

Kaup, Anastasia
Anastasia N. Kaup

Partner
Duane Morris

Ms. Kaup has represented asset managers, investment funds, sponsors, financial institutions, corporate clients and...  |  Read More

Attend on May 25

Early Discount (through 04/30/21)

Cannot Attend May 25?

Early Discount (through 04/30/21)

You may pre-order a recording to listen at your convenience. Recordings are available 48 hours after the webinar. Strafford will process CLE credit for one person on each recording. All formats include program handouts.

To find out which recorded format will provide the best CLE option, select your state:

CLE On-Demand Video

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