Structuring Credit Facilities for Private Equity Funds: Subscription, NAV and Hybrid Loans
Recording of a 90-minute CLE webinar with Q&A
This CLE webinar will provide finance counsel with the tools to structure credit facilities for private equity funds, including subscription and net asset value (NAV) based facilities and hybrids that combine aspects of both. The panel will contrast the documentation and collateral for subscription vs. NAV loans and review additional issues to address when underwriting and documenting a hybrid transaction.
- Financing lifecycle of a private equity fund
- Subscription facilities
- NAV facilities
- Hybrid facilities
- Types of collateral—UCC perfection
The panel will review these and other key issues:
- What is the collateral for subscription facilities and when are they most useful in the life of the fund?
- When should NAV facilities be created and how are adjustments made for underlying assets of a fund?
- How should a hybrid facility be structured to address both subscription and NAV underwriting?
- What are the UCC considerations for each type of collateral?
Zachary K. Barnett
Mr. Barnett primarily represents lenders and borrowers in connection with various real estate, private equity, debt,... | Read More
Mr. Barnett primarily represents lenders and borrowers in connection with various real estate, private equity, debt, energy, infrastructure and hedge fund financings. His deep understanding of the investment fund vehicle has led to the development of creative fund financing structures including fund of fund and fund of hedge fund facilities, private placements, hybrids, open-end fund lending structures as well as several different variations of fund aftercare facilities. He has extensive experience representing both borrowers and lenders in connection with subscription facilities. He also advises commercial banking clients engaged in domestic as well as international secured and unsecured financing transactions.Close
Todd N. Bundrant
Mr. Bundrant represents financial institutions, investment funds and corporate borrowers in a variety of secured and... | Read More
Mr. Bundrant represents financial institutions, investment funds and corporate borrowers in a variety of secured and unsecured finance transactions. He has extensive experience representing both borrowers and lenders in transactions involving corporations and private equity funds seeking to expand and/or leverage their portfolios. These transactions include subscription-backed credit facilities, bi-lateral loans and acquisition financing arrangements. He also has a strong background representing major US and foreign banks as lead agent and arranger in syndicated credit facilities.Close
Ann Richardson Knox
Ms. Knox has spent her entire career structuring complex leveraged financings to US and global private funds, sponsors... | Read More
Ms. Knox has spent her entire career structuring complex leveraged financings to US and global private funds, sponsors and portfolio companies and has represented both financial institutions and funds. Her vast experience encompasses financings at every level of the capital stack and every phase of a fund’s existence. She represents major domestic and foreign investment and commercial banks as lead agent and arranger in connection with subscription credit facilities. She has been lead counsel on many of the largest and complex subscription credit facilities to funds sponsored by the world’s preeminent fund sponsors. She is a frequent author and speaker on subscription credit facilities and other fund finance products.Close
Partner, European Head of Funds Finance
Mr. Stephenson is a member of the Financial Industry Group and Head of Funds Financing in London. He and his team work... | Read More
Mr. Stephenson is a member of the Financial Industry Group and Head of Funds Financing in London. He and his team work with banks, other financial institutional lenders, Managers, General Partners and Limited Partners of funds on specialist financing transactions with private equity, secondaries, real estate, direct lending and infrastructure funds. His Firm has one of the market leading funds finance practices acting for lenders and funds in the European, US, Asian and Middle Eastern markets. He has particular specialist knowledge of NAV/Asset Backed and Hybrid facilities, capital call facilities, co-investment and GP/Manager support facilities and other types of liquidity facilities provided to funds. He represents a large proportion of lenders that provide fund financing and has just won the award of partner of the year for Banking at the Client Choice Awards 2017.Close