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Fund Finance
As an example of the practice surfaces, an industry body is warning other companies not to use the covid-19 outbreak as an excuse to try and raise additional finance through flexible documentation.
Drawdowns could enable managers to pre-empt liquidity issues arising from the pandemic but may compound the problem for certain LPs.
It’s a booming market that’s been synonymous with the banks in recent years, but a new source of capital has appeared on the scene.
Growing demands from GPs and investors have seen the market evolve rapidly in recent years.
GPs can avoid potential liquidity issues by drawing down loans early and performing greater due diligence on their lenders.
GPs must think carefully about how fund-level leverage affects performance at the fund level and, by extension, their own stability, writes veteran investor Neil Harper.
GPs are increasingly looking to raise or release equity against their management companies. But what are their options, asks Investec Fund Finance’s Slade Spalding.
Growth in fund finance has overwhelmingly stemmed from subscription lines of credit to fund LP commitments during the first five years of a fund’s life. Pierre-Antoine de Selancy of 17Capital discusses what finance is available after the investment period.
PEI caught up with Fi Dinh, who led ING's first ESG-linked revolving credit facility, to discuss fund terms, interest rate calculations and sustainability targets.
The bank provided a subscription credit facility for Singapore's Quadria Capital that pegs its interest rate to fund-level ESG performance.