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
Flora Go
Partner, Fund Finance Group Head
Paul, Weiss, Rifkind, Wharton & Garrison
Ms. Go represents asset managers and their investment funds in a broad spectrum of fund-level leverage transactions for... | Read More
Ms. Go represents asset managers and their investment funds in a broad spectrum of fund-level leverage transactions for private equity, senior credit, mezzanine credit, special situations, real estate, infrastructure and other strategies. She has particular expertise advising funds with complex tax and regulatory structures on financings collateralized or supported by underlying fund investments. Ms. Go also has extensive experience in subscription-based facilities, hybrid facilities and in other types of investment fund leverage. She regularly speaks on fund finance topics and actively contributes to industry conferences and panel discussions hosted by the, American Bar Association, Fund Finance Association, and others. Ms. Go currently serves as the Vice-Chair for the Fund Finance Subcommittee of the American Bar Association.
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Javier E. Martinez
Partner
Haynes Boone
Mr. Martinez’ primary focus is in representing lenders and some borrowers in secured transactions at all stages... | Read More
Mr. Martinez’ primary focus is in representing lenders and some borrowers in secured transactions at all stages of the deal, from negotiating term sheets to booking loans to various forms of workouts including preparing for structured bankruptcies. He routinely represents clients in syndicated commodities finance transactions, other traditional asset based loans, and other loans with unique collateral issues like media loans and subscription lines for funds. Mr. Martinez also has extensive experience in complex commodities swap and hedging intercreditor issues faced by senior lenders and cross-border transactions with an emphasis on Latin America, having represented clients in both multi-jurisdictional loan and merger transactions.
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Courtney D.E. Smith
Partner
Haynes Boone
Ms. Smith represents borrowers and lenders in a variety of commercial and corporate finance transactions, including... | Read More
Ms. Smith represents borrowers and lenders in a variety of commercial and corporate finance transactions, including asset-based and cash-flow facilities, acquisition and leveraged finance facilities, working capital facilities, syndicated credit facilities, debtor-in-possession facilities, and subordinated debt facilities. She serves on the firm’s Board Advisory Committee.
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Jan Sysel
Partner
Fried Frank Harris Shriver & Jacobson
Mr. Sysel represents sponsors, borrowers, arrangers and lenders on a wide variety of financing transactions primarily... | Read More
Mr. Sysel represents sponsors, borrowers, arrangers and lenders on a wide variety of financing transactions primarily in connection with fund formation, as well as leveraged acquisitions, spinoffs, recapitalizations and restructurings, across a broad range of industries. He has extensive experience in structuring, negotiating, documenting and executing complex financings, including syndicated senior facilities, mezzanine facilities and private debt placements. Mr. Sysel's work includes unsecured and secured first and second lien facilities, both cash flow-based and asset-based, with particular focus on fund subscription facilities and other types of investment fund leverage.
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