Private Equity GP and Employee Co-Investment Credit Facilities, Management Lines of Credit
Due Diligence, Structuring and Documentation; Role of Sponsor, Administrative Issues
Recording of a 90-minute premium CLE webinar with Q&A
The CLE course will outline the key considerations in structuring management lines of credit, general partner (GP) financing, and employee co-investment facilities within private equity funds. The panel will discuss collateral security packages, fund obligations, administrative concerns, common points of lender diligence, and the impact that each of these types of transactions may have on a fund's subscription facility.
- The impetus behind co-investment credit facilities for the sponsor and lender
- Management line of credit
- Collateral: points of contention
- Due diligence of manager and management agreement(s)
- Deal terms
- Employee co-investment facilities
- Role of sponsor
- Due diligence of individual borrowers
- Employee departures and other administrative issues
- GP financing
- Issues associated with the pledge of partnership interest: bifurcation into GP and LP interests
- Ensuring continued compliance with fund agreement and fund credit facilities
- Potential conflicts of interest
The panel will review these and other relevant issues:
- What are the key deal terms and points of contention in negotiating management lines of credit?
- What are the preferred alternatives for structuring employee co-investment facilities?
- How should a sponsor handle the departure of a key employee who is a party to a credit facility? What should the documents say?
- What are the benefits of bifurcating the GP's interest into a general partnership and limited partnership interest? Is it necessary?
Alexander T. Grishman
Haynes and Boone
Mr. Grishman focuses his practice on commercial and corporate finance transactions, including the representation of... | Read More
Mr. Grishman focuses his practice on commercial and corporate finance transactions, including the representation of banks, financial institutions and private investment funds in connection with margin stock lending, asset-based financings, acquisition financings and the restructuring of existing credit facilities. In addition, he provides regulatory advice to prime brokers and advises start-ups in a variety of industries, including in-store digital media networks and clothing and apparel.Close
Deborah P. Low
Haynes and Boone
Ms. Low's background is in representing foreign and domestic institutional lenders in various forms of secured and... | Read More
Ms. Low's background is in representing foreign and domestic institutional lenders in various forms of secured and unsecured finance transactions including commodities and energy finance, subscription finance, syndicated lending, corporate finance, project finance, acquisition finance and cross-border export financing loan agreements. Her practice also includes alternative financing structures (including refinery inventory monetization transactions and private financing) and experience with energy industry form agreements such as ISDA and NAESB.Close
Ellen Gibson McGinnis
Haynes and Boone
Ms. McGinnis is recognized for her critical thinking in structuring, and practical advice in execution of, financing... | Read More
Ms. McGinnis is recognized for her critical thinking in structuring, and practical advice in execution of, financing transactions for lenders, focused in particular on subscription-secured credit facilities, having worked on the product since its initial development in the late 1980’s. She is co-chair of the firm’s Fund Finance Practice Group, for which Haynes and Boone is trusted counsel for U.S. and foreign commercial and investment banks as lenders to private equity funds. Ms. McGinnis has recently represented a number of clients in hybrid collateral facilities, and works on many of the practice’s international and multi-currency transactions.Close