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
Asset backed facilities (NAV based)
Capital call and subscription credit facilities
Fund due diligence for lenders
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.
Umbrella facilities
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News and insights
News: 21 December 2023
Allen & Overy advises Edmond de Rothschild on a strategic agreement with Apex Group
Allen & Overy has advised Edmond de Rothschild on the sale of their third party asset servicing activities based in Luxembourg to Apex Group Ltd, a global financial services provider.
Publications: 05 October 2023
Evolution of private debt market provides deal-makers with more flexible financing options
Private equity sponsors have faced a challenging landscape in the debt markets over the past 18 months. Finding leverage for acquisitions when significant parts of the capital markets had brought down…
Publications: 05 October 2023
Funds use range of techniques to fill funding gaps and navigate M&A valuation mismatches
From NAV financings to preferred equity, holdco PIK financings and partial sales, sponsors are finding creative ways to navigate current market volatility. Here we explain what to look out for in…
Publications: 13 February 2023
Podcast: Selecting your Fund Domicile - Luxembourg
In this podcast, A&O Partner Kamar Jaffer (Dubai) and Counsel Miao Wang (Luxembourg) discuss the key legal and regulatory trends in Luxembourg, a popular onshore jurisdiction for fund establishment.…