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 & insights
Publications: 14 SEPTEMBER 2021
Why more private capital fund managers are domiciling in Asia
Pragmatic fund structures and attractive tax and setup incentives are convincing an increasing number of private capital fund managers to domicile in Hong Kong and Singapore.
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Publications: 27 OCTOBER 2020
Risk Free Rate and LIBOR cessation – what does this mean for fund finance?
Our previous note entitled ‘Great Expectations – IBOR Transition for Funds and Asset Managers’ discussed the potential impact of IBOR transition on asset managers.
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Publications: 14 SEPTEMBER 2020
ESG Taxonomy: What fund and asset managers need to know
A key plank in the European Commission’s work programme to help it move to a carbon neutral, sustainable EU involves the Taxonomy Regulation. This is a framework which allows for the progressive…
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Publications: 11 AUGUST 2020
Cross-Border Distribution of Collective Investment Funds
The regulatory landscape for marketing funds in Europe is complex due to the divergent approaches taken by the various Member States in implementing fund distribution and marketing rules.
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