Kinne Manente

The rise of continuation vehicles in private markets brings new considerations for subscription line lenders financing these entities. While the core underwriting framework of continuation vehicles remains the same as a traditional fund, subscription line lenders should scrutinize several factors, including investor composition, commitment mechanics, asset concentration and underlying transaction documents.

Partner Kinne Manente and Associate Maria Parker authored a Practical Guidance Practice Note in LexisNexis discussing standstill provisions in subscription secured credit facilities. A standstill provision offers a fund the first opportunity to issue a capital call to repay the subscription secured credit facility after an event of default has occurred.

Law360 (February 11, 2020, 5:02 PM EST) -- As fund finance facilities, net asset value, or NAV, facilities, and hybrid lines of credit have become commonplace in the market, private equity and real estate firm sponsors continue to seek additional methods to deploy capital as effectively and efficiently as possible. To accommodate this demand, credit providers are expanding the variety of products offered to their clients in the fund finance industry.