Structuring Credit Facilities for Private Equity Funds: Subscription, NAV, and Hybrid Loans
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course 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.
Outline
- Financing lifecycle of a private equity fund
- Subscription facilities
- NAV facilities
- Hybrid facilities
- Types of collateral: UCC perfection
Benefits
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?
Faculty
Colin Baker
Partner
Reed Smith
Mr. Baker’s practice encompasses a wide range of fund level finance transactions (including equity bridging,... | Read More
Mr. Baker’s practice encompasses a wide range of fund level finance transactions (including equity bridging, subscription line financing, investment warehousing, portfolio and asset acquisition facilities, GP facilities and carry/co-investment facilities), where he advises private equity houses, asset managers and financial institutions.
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Kevin-Paul Deveau
Partner
Reed Smith
Mr. Deveau is a banking and finance partner with Reed Smith in London. He advises clients on a broad range of domestic... | Read More
Mr. Deveau is a banking and finance partner with Reed Smith in London. He advises clients on a broad range of domestic and cross-border debt finance transactions, including fund finance, acquisition finance, real estate finance, project finance, general corporate lending, and restructuring.
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Bronwen Jones
Partner
Reed Smith
Ms. Jones acts for banks and other financial institutions, sponsors, general partners and fund managers on a range of... | Read More
Ms. Jones acts for banks and other financial institutions, sponsors, general partners and fund managers on a range of fund finance matters including capital call facilities, NAV and asset backed facilities, general partner facilities and co-investment facilities.
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Leon Stephenson
Partner, European Head of Funds Finance
Reed Smith
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.
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Elizabeth R. Tabas Carson
Partner
Reed Smith
Ms. Tabas Carson is a partner in the firm's Financial Services Group. Experienced in a wide range of U.S. and... | Read More
Ms. Tabas Carson is a partner in the firm's Financial Services Group. Experienced in a wide range of U.S. and English law banking and transactional finance matters, she concentrates her practice on banking and financing transactions including domestic and cross-border leveraged acquisition financings, fund financings, dividend recapitalizations, working capital financings, restructurings and other distressed transactions.
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James S. Lawlor
Counsel
Reed Smith
Mr. Lawlor is a member of the Financial Industry Group. His practice includes representation of lenders and borrowers... | Read More
Mr. Lawlor is a member of the Financial Industry Group. His practice includes representation of lenders and borrowers in commercial finance matters and of issuers, underwriters and credit enhancers in taxable and tax exempt debt offerings. Mr. Lawlor has extensive and diverse experience in public, securitized and project financings. He has served as bond, underwriter, bank and borrower counsel in bond issuances, and as both lender's and borrower's counsel on syndicated and bilateral bank credit agreements. A significant portion of Mr. Lawlor’s practice involves finance transactions in the healthcare, communications and media, energy, higher education, non-profit, and transportation industries.
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