Due Diligence in Fund Finance Transactions: Key Considerations for Lenders in Subscription and NAV Facilities
A live 90-minute premium CLE video webinar with interactive Q&A
This CLE webinar will discuss various aspects of due diligence that should be conducted in fund finance transactions, including subscription credit facilities (SCF) and net asset value (NAV) credit facilities. The panel will describe some of the current diligence practices typically involved in each type of credit facility and discuss potential changes to due diligence in these fund financing transactions.
Outline
- Due diligence in the current fund finance environment
- Due diligence for subscription credit facilities
- Subscription agreements
- Limited partnership agreement
- Side letters
- Private placement memoranda
- Due diligence for NAV credit facilities
- Documentation relating to underlying investments
- Organizational documents of borrower and guarantor
- Underwriting the collateral and facility
Benefits
The panel will review these and other important issues:
- Why has due diligence become particularly important in the current fund finance environment?
- What are the key provisions in a limited partnership agreement that could affect the ability of a fund to enter into an SCF?
- What are some red flags that lenders should be aware of in conducting due diligence on a NAV or SCF deal?
Faculty
J. Eric Holland
Counsel
Dechert
Mr. Holland is counsel in Dechert’s private credit group. He represents lenders and borrowers in secured and... | Read More
Mr. Holland is counsel in Dechert’s private credit group. He represents lenders and borrowers in secured and unsecured credit facilities and other financial transactions. These include senior and subordinated debt financings, fund finance (including subscription facilities, NAV facilities and hybrid facilities), acquisition financings, asset-based and reserve-based loans.
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Thomas R. Howland
Partner
Simpson Thacher & Bartlett
Mr. Howland is a Partner in the Firm’s Fund Finance Practice and a member of the Banking and Credit... | Read More
Mr. Howland is a Partner in the Firm’s Fund Finance Practice and a member of the Banking and Credit Practice. His practice is focused on advising asset managers and their sponsored funds and portfolio companies across asset classes in bank financings such as NAV, hybrid and subscription facilities, firm or management company facilities, holdco loans, mezzanine loans, margin loans and other forms of backleverage. Mr. Howland also advises them in raising capital from insurance companies, debt funds and other non-bank sources through alternative structures, including private placements, securitizations, asset-backed notes and rated feeders, as well as on the financing aspects of asset management M&A. He has recently represented clients including BGO, Blackstone, Centerbridge, KKR, Macquarie, Northwood, Platinum Equity, Stonepeak and TCV. Mr. Howland was recognized as a 2024 “Rising Star” by the Fund Finance Association.
CloseEarly Discount (through 09/05/25)