Fund Finance

CFOs rally behind disclosure, but two IRRs still contentious; CFOs & COOs Forum 2021 registration is open.

CFOs say they welcome ILPA’s call for more disclosure on subscription credit line usage, but some still argue producing two different IRRs will only further complicate reporting.

Me: 'Thoughts on the ILPA recs?' You: 'They’re great. But I want to keep my sub line drawn for the first two years of the next fund'; Compliance during the pandemic: tips and advice from experts.

CFOs speaking to Private Funds CFO are keen to be able to keep subscription credit lines drawn until their funds hold a final close to avoid what they say are messy LP rebalancing issues.

The industry organization is circulating a draft proposal recommending a host of disclosures on GPs’ use of subscription credit lines, with an eye to helping LPs manage exposure to the lines, allocation to PE and overall liquidity.

ILPA outlines how LPs can estimate their subscription credit line liability in a draft set of recommendations on disclosures reviewed by Private Funds CFO.

Some GPs are looking to get recycling clauses to support portfolio companies, some recycling clauses already allow for that, some appear not to; SEC looks to clean up rule on fund valuations.

Concentrated NAV lenders and preferred equity financers are seeing historic dealflow. But only a handful of alternative lenders exist, and banks active in concentrated NAV are scarce and rarely transact. With potentially thousands of funds looking for liquidity for their portfolio companies, will this rare source of fund liquidity be able to sate demand?

Private funds' liquidity options have evolved in recent years. Davis Polk & Wardwell lawyers Leor Landa, Michael S. Hong and Brantley A. Hawkins explain some of the alternatives to traditional fund financing solutions.

The niche strategy is coming into its own, as it did back in the global financial crisis.