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As Net Asset Value (“NAV”) credit facilities continue to grow in popularity, we have seen a steady increase in non-traditional borrowers utilizing NAV loans, including family office borrowers. The term “family office” is used to describe structures established by ultra-high-net worth families to manage and grow their wealth. NAV facilities allow family office borrowers to unlock liquidity required to meet their needs without selling off investments. The purpose of this article is to explore a few key features that we often see in family office NAV facilities.
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Fund finance is and always has been by nature a cross border enterprise. While there are a number of lenders that we represent in the United States that lend to funds exclusively organized in the U.S.– typically in Delaware – that is as a general matter the exception rather than the rule. Given a confluence of factors, including the home jurisdiction of certain investors, tax, and other legal and economic considerations, most fund structures also feature entities organized outside the U.S., most typically in Canada, Cayman, Ireland, Luxembourg, and other European jurisdictions. Therefore, there are cross-border considerations in almost every fund finance deal. Our wonderful stable of local counsel is a critical part of these transactions by drafting and negotiating provisions that are relevant to the legal constructs of the jurisdictions in question, in particular those that relate to the existence, power and authority of such entities, the grant and perfection of security interests, and advising on mechanics that may be unique to the account structure or depositary arrangements, in these jurisdictions.
While the paragraph above gives some perspective on our day-to-day U.S. practice, the subject of this article is slightly different in perspective. In deals originated out of our London fund finance practice, we frequently work alongside our London colleagues to act as their local counsel in connection with English law governed credit or facilities agreement featuring U.S. obligors.
Cadwalader Fund Finance, Finance and Financial Services Group partners have contributed to the 13th edition of Lending & Secured Finance 2025, which covers common issues in lending and secured finance laws and regulations – including guarantees, collateral security, financial assistance, and syndicated lending, published by Global Legal Group.
We’re looking forward to the DealCatalyst Future of Fund Finance Conference next week at the New York Marriot Downtown in Manhattan.
Cadwalader is proud to be a lead sponsor and have Partners Angie Batterson and Gregg Jubin speaking at the conference, sharing their insight on key industry topics.
Join your friends at Cadwalader and fellow industry peers for cocktails on our outdoor terrace following the DealCatalyst Future of Fund Finance Conference.
The Fund Finance Association is pleased to announce that registration is now OPEN for the 9th Annual European Fund Finance Symposium. We are delighted to introduce our new venue, the iconic Old Billingsgate, located on the River Thames in central London.
A lot of attention and press has been given to market volatility this year, including its impact on the fund finance industry. There is at least one sector of the fund finance industry that stands to benefit from this volatility. Because their investment strategies involve taking both long and short positions, many hedge funds are poised to benefit from market volatility, regardless of the direction of the market.
This article highlights some of the key features of financing structures used by funds of hedge funds.
A recent decision of the Court of Justice of the European Union (the EU’s highest court) has clarified some of its views on ‘asymmetric jurisdiction clauses’. An asymmetric jurisdiction clause is one that allows one party (typically a lender) a greater choice of forum for initiation of legal actions and enforcement than another party (typically a borrower).
The CJEU decision is of course quite technical and touches upon a number of EU laws, conventions and regulations (avid readers of CJEU materials can find the full text under reference C-537-23). While this isn’t the forum to explore its details in full, the decision has already begun to ripple into the fund finance world. This note explains why.
NLC Capital Partners launches open-ended Luxembourg based fund designed to deliver premium risk-adjusted returns through investment-grade, short-dated subscription line financing.