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…
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…
The second quarter will be a crucial reporting period for business development companies, which target their capital at the US economic heartland of SMEs. Robin Blumenthal gets the lowdown from the market on the challenges that lie ahead. April is the cruellest month, or so said the poet TS Eliot in the years following the…
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…
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.…
Fund Finance Partners looks at the current priorities of a market that has experienced rapid growth through the good times, writes Andy Thomson The fund finance market has grown rapidly in recent years as alternative asset managers have found themselves able to access a useful source of liquidity at low cost. But how has 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…
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…
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…
March 11, 2020 – Since FFP’s inception in 2019, the vast majority of our fund sponsor clients’ mandates stem from our collective expertise in and around the fund finance markets. Between the number of fund finance transactions our principals have executed and our long-standing, deep relationships with virtually every bank and alternative lender in the space,…