Private Equity International: GPs ponder early repayments for credit lines as coronavirus threatens liquidity

March 17, 2020 By: Alex Lynn Drawdowns could enable managers to pre-empt liquidity issues arising from the pandemic but may compound the problem for certain LPs. Some general partners are considering early repayments for subscription credit line drawdowns in anticipation of potential liquidity issues among LPs arising from coronavirus. Modern limited partnership agreements typically specify…

Private Equity International: Uncommitted debt – How to avoid getting stung in a downturn

February 4, 2020 By: Alex Lynn GPs can avoid potential liquidity issues by drawing down loans early and performing greater due diligence on their lenders Uncommitted capital call facilities have taken the private markets by storm, but fund managers should be cognisant of the potential for lenders to withhold financing during a liquidity crunch. The…