Structuring Collateralized Fund Obligations: Benefits, Variations and Key Considerations
A Growing CDO/CLO and Fund Finance Liquidity Solution
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE webinar will discuss collateralized fund obligations (CFOs), which have become an increasingly popular investment vehicle for securitizing portfolios of alternative assets. The panel will explain the history, structure, and variations of these alternative financing vehicles and identify key issues and considerations that should be addressed when contemplating a CFO structure.
- History and background of CFOs
- Definition of a CFO
- Structure of a CFO
- Types of CFO portfolios
- Identified pool vs. blind pool of assets
- Third party vs. affiliated funds
- Number of funds
- Age of private financial assets
- Fully drawn vs. ongoing commitments
- Types of assets
- CFO structuring challenges
- Timing of dividends and other distributions are difficult to predict
- Private equity investments require an investor to commit to making capital contributions when called
- Closing a CFO: timing and execution
- Payments and distributions
- Advantages and disadvantages of CFOs
- Additional issues and considerations
The panel will review these and other key issues:
- What is the history and background of CFOs?
- How are CFOs structured?
- What are some variations of CFOs?
- What are the advantages and risks of CFOs?
Mr. Kerfoot focuses principally on fund finance and structured finance transactions. He has held leadership positions... | Read More
Mr. Kerfoot focuses principally on fund finance and structured finance transactions. He has held leadership positions in both banking and law in the fund finance industry for over two decades and is a frequent speaker and author on various fund finance matters. Mr. Kerfoot advises on a broad spectrum of private equity and private credit financing and liquidity solutions. He counsels both borrowers and lenders on subscription lines, NAV-based facilities and preferred equity financings, as well as asset-based middle market loan and other private credit portfolio financings. Mr. Kerfoot also structures and advises on both GP-led and LP-led collateralized fund obligations, collateralized loan obligations, insurance securitizations, and other similar securitized and structured products and derivatives. Prior to joining the firm, he was a Managing Director in the Credit and Structured Financing group at Société Générale, where he structured and marketed collateralized financings for portfolios of private equity secondaries, middle market loans, broadly syndicated loans and senior and mezzanine tranches of CLOs and other securitized products. Prior to that, Mr. Kerfoot was the Americas Head of Fund Finance at UBS AG.Close
Courtenay Myers Lima
Latham & Watkins
Ms. Myers Lima is a member of the Capital Markets Practice and Financial Institutions Industry Group. She has broad... | Read More
Ms. Myers Lima is a member of the Capital Markets Practice and Financial Institutions Industry Group. She has broad U.S. and international experience advising financial institutions on public and private capital markets offerings, regulatory matters, financial technology platforms, and corporate governance. Ms. Myers Lima also advises global financial institutions in connection with capital raising activities, including structuring and execution of innovative financial instruments. She also has experience in initial public offerings, bank note issuance programs, commercial paper, and collateralized fund obligations.Close
Ramya S. Tiller
Debevoise & Plimpton
Ms. Tiller is in the firm’s Finance Group and has experience in a broad range of financing transactions,... | Read More
Ms. Tiller is in the firm’s Finance Group and has experience in a broad range of financing transactions, including complex acquisition and leveraged finance transactions, such as the $5.385 billion financings related to the separation by spinoff of the Herc Rentals equipment business from Hertz and the financing aspects of Discovery’s $14.6 billion acquisition of Scripps Networks Interactive, fund finance transactions and other alternative capital transactions. Ms. Tiller is a frequent speaker on finance-related topics.Close
Managing Director, Private Capital Advisory Group
Mr. Yetis is a Managing Director in Evercore’s Private Capital Advisory group, leading Structured Capital... | Read More
Mr. Yetis is a Managing Director in Evercore’s Private Capital Advisory group, leading Structured Capital Solutions business with a focus on Collateralized Fund Obligations and rated feeder funds. He has over 20 years of banking and debt capital markets experience. Prior to joining Evercore, Mr. Yetis was the Americas Head of Capital Solutions at UBS Investment Bank, where he innovated numerous award-winning capital markets products for FIG Investment Bank clients. Mr. Yetis has long-standing experience in advising banks, alternative asset managers and insurance companies on capital markets, structured solutions, ratings advisory, and risk and capital management topics.Close