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ABCs of fund finance: credit facilities for secondaries and FoF

Sponsors of secondaries and funds of funds should be mindful of several key issues that can arise when structuring and negotiating these financing arrangements, according to law firm Dechert.

Three unusual deals of H1

Record half-yearly fundraising means buyers have had to expand their investment scope to chase promised returns. Here’s a trio of innovative transactions that caught our eye.

Landmark backs ICG mezzanine restructuring – exclusive

The €650m deal moved assets from Recovery Fund 2008 into a new vehicle.

HarbourVest acquires debt stakes from Finnish insurer

The deal involved Varma Mutual Fund Pension selling part of its stakes in two MML Capital Partners mezzanine funds to the investment manager.

ILPA urges LPs to ask about credit lines

Quarterly reports to investors must be explicit on the use of subscription credit lines, while LPs must ask for data that discounts the impact of borrowed cash, the lobby group recommends.

Three questions with Crestline’s Dave Philipp

Crestline, which is based in Texas, has shifted towards the preferred equity niche. Secondaries Investor caught up with the firm’s head of PE credit and fund restructuring to talk deal sourcing and increased interest in preferred equity.

HarbourVest, Portfolio Advisors pick up Black Diamond stakes – exclusive

One of the interests sold in the manager's 2006-vintage distressed fund was a $100m stake held by Ontario Teachers' Pension Plan, Secondaries Investor has learned.

Why secondaries love credit lines – and vice versa

Secondaries funds take full advantage of subscription lines, but subscription lines also benefit from the secondaries market.

Subscription lines may restrict LP stake transfers

Providers of subscription lines are increasingly looking to take control of LP transfers, according to lawyers at Debevoise & Plimpton.

‘Secondaries could end up losing money’ – Hamilton Lane CEO

Buyers are using levels of leverage that 'haven't been seen before', according to Mario Giannini.