Private Debt Investor: Three Key Developments in Fund Finance
As consistently as fund finance has grown, the economic and financial markets’ ripple effects of CV19 have discarded the status quo. We are regularly discussing those changes with Private Equity International and Private Debt Investor, and as published last week, there are three key changes that the pandemic has brought about, which affect borrowers, lenders and investors, alike.
FFP and Friends on COVID-19
We are all doing our best to adapt to the disruption caused by Covid-19 (“Coronavirus”). In our latest article, we at FFP thought it may be helpful to share some of the recent views and opinions expressed by our colleagues and friends across the fund finance and broader private equity markets.
Private Credit Fund and BDC Leverage Stress Testing Comes to Life: It’s Time to Act
Since the outbreak of COVID-19, followed by the ensuing dramatic social and economic isolation meant to contain it, the entire economy is showing its first signs of widespread contraction in over a decade. In this article FFP focuses on how this economic slowdown, which severely impacts corporate earnings and liquidity, is impacting the ability of Debt Funds that have, over the course of the past decade, increasingly met their financing needs, to continue to do so.
Private Equity International: GPs ponder early repayments for credit lines as coronavirus threatens liquidity
Fund Finance Partners’ co-founders, Zac Barnett and Richard Wheelahan, spoke with PEI’s Alex Lynn about the coronavirus / covid-19 and its impact on subscription facilities, fund finance and the broader private equity markets.
Mitigating Conflicts of Interest in Fund Finance
Sponsors are under more and more scrutiny with respect to conflicts of interest in the fund finance space. In FFP’s latest thought piece we discuss how several are working to mitigate them.
Private Equity International: Uncommitted debt - How to avoid getting stung in a downturn
Fund Finance Partners’ co-founders, Zac Barnett and Richard Wheelahan, spoke with PEI’s Alex Lynn about their interest in fund finance, specifically private fund sponsors’ burgeoning use of uncommitted subscription facilities.
“Improved BDC Leverage Options Set to Take Off in 2020”
There are more debt finance solutions for BDCs than ever before. Regulatory relief now permits BDCs to use greater leverage; a robust credit market means there are more debt products within reach. This is the time for BDCs to optimize asset-level financing strategies.
“How Extremely Busy Executives Make Time To Be Great Parents”, With Zac Barnett of Fund Finance Partners
A child’s self-esteem is tied, in large part, to how they are treated, valued and cared for by their parents. If we spend too much time “giving time” to everything else in our lives ahead of our children, we are teaching them that they are less important to us — and therefore the greater world. In this interview, Zac Barnett discusses strategies to create more space in our lives in order to give our children more quality attention.
Umbrella Facilities
Umbrella Facilities are an aggregation of multiple subscription-backed credit lines, for the same asset manager, benefiting multiple investment vehicles, under one set of documents, in a single transaction. We have been directly involved in the evolution of these facilities for well over a decade. Given their resurgence and the frequency with which we’re contacted by asset managers looking for a financing solution like an Umbrella Facility, we are publishing this white paper to summarize their structure, identify their pros and cons and proffer an explanation as to why the demand for Umbrella Facilities has recently spiked.
National Real Estate Investor
Private equity investors allocated a lot of capital to CRE debt plays over the past few years. That trend has been slowing of late.
Why Governance Matters in an Asset Manager’s Leverage Strategy
How does governance come into play for institutional asset managers. One key area is how leverage is managed, according to Richard Wheelahan, III, and Zac Barnett, the Co-Founders of Fund Finance Partners.
Hybrid Credit Facilities
For well over a decade, the most innovative asset management firms have utilized “Subscription Facilities” (subscription-backed credit facilities—also known as “capital call” or “capital commitment” facilities)—as an important source of liquidity for their funds and SMAs (“Funds”). At Fund Finance Partners, we have witnessed Subscription Facilities used in order to quickly access cash without calling investor capital…
Fund Finance Friday From Cadwalader
FFF this week got hold of Zac Barnett and Richard Wheelahan, who last week announced the founding of Fund Finance Partners. Here is our conversation.
Management Company Lines: “Don't Leave Home Without One”
As fund finance product evolution continues to chase the rapid specialization and growth of the asset management industry, fund sponsors and asset management firms (each a “Sponsor”) are taking advantage of management company lines of credit (each a “MC line”). We at FFP view MC lines as an essential tool for Sponsor growth, operational flexibility and principal retention in your increasingly competitive industry.
Subscription Facilities – No Apology Necessary
Despite many media reports and articles to the contrary, fund sponsors should not be apologizing to their investors for availing themselves of the many advantages of a subscription-backed credit facility. It is true that the origin of these facilities centered around the mere bridging of capital calls but there are numerous other advantages and fund sponsors should consider a more full-throated defense of their strategic value. There are reasons why they have become an essential tool in the CFO’s toolbox and those advantages should be brought to light.
New U.S. Debt Advisory Business
CHICAGO, IL – October 2, 2019 /PRNewswire/– Fund Finance Partners (FFP) today announced the launch of their new fund advisory business. FFP co-founders Zac Barnett and Richard Wheelahan bring a combined 35+ years of direct experience in the fund finance space. F