Fund Finance

Credit lines are contentious but their ability to improve IRR appears limited to the most strongly performing funds and funds early in their life, writes Christoph Jäckel of Montana Capital Partners.

ATP PEP will ask GPs to provide an IRR that has been adjusted to compensate for the use of subscription credit lines, managing partner Torben Vangstrup told PEI.

The firm tries to secure non-recourse financing, long-term maturities and little-to-no financial maintenance covenants, according to chief executive Cyrus Madon.

On its Q2 earnings call, chief financial officer Bill Janetschek detailed the way the firm handles credit facilities.

Private Equity International speaks to LPs and GPs about the industry body's updated guidelines.

GPs must think carefully about how fund level leverage affects performance at the fund level and by extension, their own stability.

The bank's secondaries advisory group has teamed up with its fund financing unit and has executed around 20 private equity loans over the last two years.

TPG veteran Ben Gray’s firm is understood to be using credit lines to avoid fee-drag on Australia’s largest first-time fund.

Credit shops have traditionally avoided the strategy, but innovative new opportunities are luring them to carve a niche for themselves

Comments from one of the US's largest pension plans are a reminder that the debate around credit lines is not settled.