Subscription Facilities: Variance Rules

Until the disruption Covid-19 wrought upon markets and societies in early 2020, subscription finance had been (perhaps erroneously) thought of as commoditized, with terms and advance rates generally predictable and consistent for those regularly in the market.  The impact of the pandemic on depository institutions and their respective reactions, however, has been anything but consistent.  Since the…

Management Company Lines: The Heat is On

In October, Fund Finance Partners published a comprehensive primer on management company lines, or credit facilities extended to investment advisers and fund management companies (“ManCo Lines”).  As FFP’s partners update this ManCo Line primer from our respective home offices, much has changed since October; ManCo lines being no exception. What’s different about ManCo Lines, now? ManCo Lines are…

Bloomberg: For Private Debt’s BDCs, the Worst May Be Yet to Come This Year

By: Kelsey Butler Business development companies, the most visible pocket of the $800 billion private credit market, face more dividend cuts and possibly even restructurings later this year after the Covid- 19 pandemic has bruised their portfolios. The companies this month released results for the quarter ended March 31, and the industry saw steep drop-offs in the value of investments and other headwinds caused by the new coronavirus. BDCs that wrote downthe loans they own by about 6.5% ended up posting declines in their net asset value per share ranging between 6% and 30%, according to JMP Securities analyst Christopher York. Those writedowns make…

Private Funds CFO: Alternative fund financers to the rescue, but is it enough?

Concentrated NAV lenders and preferred equity financers are seeing historic dealflow. But only a handful of alternative lenders exist, and banks active in concentrated NAV are scarce and rarely transact. With potentially thousands of funds looking for liquidity for their portfolio companies, will this rare source of fund liquidity be able to sate demand? By: Graham Bippart There are only a handful of players in the concentrated net asset value (NAV) lending and preferred equity financing markets, but since early and mid- March they’ve seen a tremendous boost in dealflow.…

FFP and Friends on COVID-19

As we all do our best to adapt to the disruption caused by  the outbreak of the global pandemic associated with the 2020 Covid-19 (“Coronavirus”), we thought it may be helpful to share some of the recent views and opinions expressed by FFP‘s colleagues and friends across the fund finance and broader private equity markets. We’ll…

Private Credit Fund and BDC Leverage Stress Testing Comes to Life: It’s Time to Act

Only a few weeks ago (although it now feels like another era), Fund Finance Partners (“FFP”) published an article on the numerous ways that direct lending funds and BDCs (collectively, “Debt Funds”) could finance their investment portfolios in order to increase liquidity, enhance returns and offer more competitive spreads to borrowers.  (Article)  Now, though, is the time…