Welcome to a special joint issue of Collateral and Alternative Insight. This time, last year, we reported on the swelling use of subscription credit lines by managers of private equity funds. There is no sign of the trend abating. According to recent estimates, the global fund finance market is around $500 billion, whilst the UK market is in the region of £150 billion.
Although the terms and structures often reflect the bargaining strength of borrowers in today’s market, there are nonetheless a variety of risks and issues that confront GPs and which need to be tackled in negotiating these facilities.
Here are eight top tips for managers when negotiating fund finance structures with lenders.
MJ Hudson works with clients in the fields of law, international administration, fund management, investment advisory, and IR and marketing, across both alternative and traditional asset classes.Gresham House Strategic PLC (LON:GHS) has a 1.3% ownership of MJ Hudson as of June 2018.