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Jan 8, 2025 | 
jdsupra.com | Matthew Bisanz |Kiel A. Bowen |Todd N. Bundrant
EXECUTIVE SUMMARYSection 23A of the Federal Reserve Act and its implementing regulation, Regulation W, impose restrictions on banks concerning “covered transactions” with their affiliates. With the increasing intertwining of banking institutions and private investment funds, understanding the implications of Regulation W is more critical than ever.
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Aug 29, 2024 | 
jdsupra.com | Kiel A. Bowen |Todd N. Bundrant |Mark Dempsey
Executive SummaryOver the last several years, a need has arisen in the fund finance market, which caters to private equity, venture capital, family offices, and other investment funds (“Funds”) and their sponsors, for financing to support and leverage investment portfolios of highly concentrated asset pools or even single assets, in each case, with limited liquidity. These portfolios present challenges for financings, including issues with valuation, enforcement, and liquidation.
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Aug 2, 2024 | 
jdsupra.com | Kiel A. Bowen |Todd N. Bundrant |Mark Dempsey
Executive SummaryNet Asset Value (“NAV”) credit facilities1 are a tool that borrowers may use to access financing based on the value of their underlying investment portfolio. The users of these facilities are generally private equity funds, family offices, and large investors with diversified private equity holdings.
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Jul 31, 2024 | 
mondaq.com | Kiel A. Bowen |Todd N. Bundrant |Mark Dempsey |Ann Richardson Knox
Net Asset Value ("NAV")
credit facilities1 are a tool that borrowers may use to
access financing based on the value of their underlying investment
portfolio. The users of these facilities are generally private
equity funds, family offices, and large investors with diversified
private equity holdings. Because of the structures that accompany
these types of entities and constraints related to the investment
portfolio, there is no one-size-fits-all approach when it comes to
NAV credit facilities.
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Jul 16, 2024 | 
lexology.com | Kiel A. Bowen |Todd N. Bundrant |Mark Dempsey
Executive SummaryPrivate equity structures often use “blockers” to achieve certain tax benefits. In this Legal Update, we explain what blockers are, how they may be used in a subscription credit facility, and what lenders should consider when blockers are shared among multiple funds. BackgroundPrivate equity fund structures (“Funds”) can take a variety of forms that range in complexity, depending on the investor base and sponsor.
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Jun 25, 2024 | 
mondaq.com | Matthew Bisanz |Kiel A. Bowen |Todd N. Bundrant |Mark Dempsey
On May 22, 2024, the US federal banking regulators finalized a new set of
reporting requirements for bank loans and commitments to fund
finance facilities, private credit lenders, and other nonbank
financial entities.1This change reflects not only the
rapid growth in this sector but also the regulators' desire to
better understand and supervise concentrations of credit and risk
in the US banking system.
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Jun 19, 2024 | 
jdsupra.com | Matthew Bisanz |Kiel A. Bowen |Todd N. Bundrant
On May 22, 2024, the US federal banking regulators finalized a new set of reporting requirements for bank loans and commitments to fund finance facilities, private credit lenders, and other nonbank financial entities.1This change reflects not only the rapid growth in this sector but also the regulators’ desire to better understand and supervise concentrations of credit and risk in the US banking system.
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Jun 18, 2024 | 
jdsupra.com | Matthew Bisanz |Todd N. Bundrant |Mark Dempsey
EXECUTIVE SUMMARYSection 23A and Super 23A can create additional complications for lenders in the fund finance market. Intended to protect the stability of financial institutions by restricting transactions with affiliates, Section 23A and Super 23A can limit the relationship between financial institutions, funds, and investors party to a financing transaction.
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Dec 29, 2023 | 
jdsupra.com | Matthew Bisanz |Kiel A. Bowen |Todd N. Bundrant
On December 27, 2023, the US federal banking regulators proposed reporting requirements for bank loans and commitments to the fund finance sector.1 This change reflects not only the rapid growth in this sector but also the regulators’ desire to better understand and supervise concentrations of credit and risk in the US banking system.
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Dec 28, 2023 | 
lexology.com | Kiel A. Bowen |Matthew Bisanz |Ann Richardson Knox |Mark Dempsey |Todd N. Bundrant |Jeffrey Taft
On December 27, 2023, the US federal banking regulators proposed reporting requirements for bank loans and commitments to the fund finance sector.1 This change reflects not only the rapid growth in this sector but also the regulators’ desire to better understand and supervise concentrations of credit and risk in the US banking system.
