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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.

Fund finance focus: don’t neglect the positives

The use of subscription facilities by funds has seen its criticism, but the practice is not without its positives, write Thomas Smith and Almas Daud.

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.

European CFOs split on fund leverage

Some investors are in favour of reducing the frequency of capital drawdowns; many are concerned about the risks of extending loan periods.

UBS: leverage and deferred payments on the rise

The number of leverage providers in secondaries has more than doubled over the last four years, according to the report obtained exclusively by Secondaries Investor.

UBS: quarter of buyers lower target returns

Drivers include increasing competition and record high dry powder, according to a report by the Swiss bank obtained by Secondaries Investor.

Declining secondaries returns push funds towards leverage

Fewer buyers sought IRRs of above 15% last year compared with a year earlier, a survey by advisory firm Cebile Capital has found.

Financing to tighten post-Brexit – survey

While more aggressive financing structures such as payment-in-kind notes may be off the table, deals are ongoing, experts say.

Secondaries’ dirty little secret

The majority of secondaries and fund of funds respondents to a recent survey by Investec said that while they use debt, they don't need it to be competitive.