Insurance companies are stepping in to fill a supply gap in fund finance, and one of the insurance worlds’ first movers in the market is looking to expand its fingerprint.
A provision of a bill in the US House of Representatives that further limits favourable tax treatment of carried interest could make continuation funds untenable, a panel has heard.
"Fund managers are becoming increasingly sophisticated users of GP capital, whether it's preferred equity or debt," said Tom Glover, BC Partners operating advisor.
The idea of having to foot a bill to the tune of millions of dollars to a loan secured by a fiction serves as a wakeup call to investors, lenders and GPs alike.
Can private equity be a force for good? Key leaders, including Verdun Perry, global head of Strategic Partners, discuss how to transform an industry and leverage its economic and social power to drive change.
Major lenders in subscription credit facilities reined in new lending shortly after the crisis began in March, focusing on existing clients and facing various constraints. Smaller banks have been stepping in to the breach.