Cookies on our website

We use cookies on our website. To learn more about cookies, how we use them on our site and how to change your cookie settings please view our cookie policy.

Read more Close
Skip Ribbon Commands
Skip to main content
Sign In

Fund Finance

Fund Finance

Allen & Overy’s global fund finance practice has extensive experience in advising banks, agents, alternative lenders and investment fund managers on a broad range of upstream and downstream facilities.

Our lawyers bring in-depth technical and commercial knowledge to a wide range of lending structures across the fund finance spectrum. Working alongside specialist lawyers in our real asset (including private equity, real estate, transportation and infrastructure), tax and regulatory teams, we offer an exceptional breadth of experience – and as a result our clients benefit from our clear understanding of the current legal and commercial issues relevant to all parties in fund finance transactions.

A particular strength is our ability to offer specialists across our global fund finance practice and in the key areas of finance, fund establishment, tax and regulatory. These specialists frequently work together on financing transactions involving different types of assets across multiple jurisdictions. We regularly work on facilities with European (including UK and Luxembourg) and offshore (including Channel Islands and Cayman Islands) entities. We have a deep understanding of the issues relevant both for financiers and also for funds and their investors.

We advise clients on:

Capital call and subscription credit facilities

A type of bridge facility, usually short-term, entered into by the fund in order to assist in providing funding pending a close of the fund or in achieving investment objectives and to manage the timing and administration of investor drawdowns. The lender’s risk is on the creditworthiness of the fund investors and will generally include security over the uncalled investor commitments and related bank account security.

Umbrella facilities

A facility whereby a lender provides separate loans to multiple borrowers under one facility agreement thereby allowing the parties to agree just one set of documents for numerous facilities. Likely to be of use for individual borrowers who are under common management and/or are part of a wider fund structure. Many of the terms of the facility will be common to all borrowers but investor specific terms (such as advance rates, concentration limits and loan amounts) can be different. Each borrower will usually be severally liable for its own borrowings under these facilities.

Hybrid facilities

A facility which looks down at the underlying assets (as for an asset backed facility) as well as requiring there to be headroom in the undrawn commitments of investors.

These can be: 

  • ‘true’ hybrid facilities, including full security and credit analysis on the investors, the funds assets and underlying cashflows; or
  • ​a variant on a capital call facility with an additional net asset value covenant inserted which will take effect once the ratio of undrawn investor commitments to financial indebtedness reaches a particular level.

Asset backed facilities (NAV based)

A facility provided to a fund which is intended to have full recourse to the underlying investments (and the cash flows and distributions related to them) of the fund. A NAV facility will be backed by the assets of the relevant fund, which may be its equity or other partnership interests it owns (for example, for secondary funds or "fund-of-funds" borrowers) or its underlying loan portfolio (in the case of a direct lending fund). Lending to a direct lending fund may have many similarities with a CLO structure and we are familiar with the issues where such a facility is to be structured as a securitisation. 

Fund due diligence for lenders

Our fund formation team regularly advise lenders, investors and fund managers in connection with reviews of fund documents. This can be as part of the usual diligence on a financing transaction or as part of a wider portfolio review exercise.

Key people

Greg Brown
Greg Brown
Partner
United Kingdom
Telephone icon+44 20 3088 4760
Send email
View officeView profile
Matt Huggett
Matt Huggett
Partner
United Kingdom
Telephone icon+44 20 3088 4929
Send email
View officeView profile
Nick Williams
Nick Williams
Partner
United Kingdom
Telephone icon+44 20 3088 2739
Send email
View officeView profile
Paul Sampson
Paul Sampson
Senior Associate
United Kingdom
Telephone icon+44 20 3088 4255
Send email
View officeView profile
Amanda Lemesle Adams
Amanda Lemesle Adams
Senior Associate
United Kingdom
Telephone icon+44 20 3088 2498
Send email
View officeView profile
Pierre Schleimer
Pierre Schleimer
Partner
Luxembourg
Telephone icon+352 44 44 55 716
Send email
View officeView profile
Marc Ponchione
Marc Ponchione
Partner
United States
Telephone icon+1 202 683 3882
Send email
View officeView profile
Jillian Ashley
Jillian Ashley
Senior Counsel
United States
Telephone icon+1 212 610 6477
Send email
View officeView profile
Fiona Cumming
Fiona Cumming
Partner
China
Telephone icon+852 2974 7240
Send email
View officeView profile
Patrick Wong
Patrick Wong
Partner
China
Telephone icon+852 2974 7260
Send email
View officeView profile
Jason Denisenko
Jason Denisenko
Partner
Australia
Telephone icon+612 9373 7809
Send email
View officeView profile
James Abbott
James Abbott
Partner
Australia
Telephone icon+612 9373 7855
Send email
View officeView profile


  • Add comment (optional)