fund finance

ESG-backed finance facilities have been one of the fastest growing areas of innovation in private equity over the last 12 months.

But investors express concern over shifting terms, with a significant minority worried about the extent to which GPs are using credit lines.

As emerging markets GPs continue to seek ways to address reduced liquidity and a challenging fundraising environment, law firm Akin Gump asks if NAV facilities could be part of the answer.

Alicia Gregory, head of private equity at the Australian SWF, says investors could be left overexposed if less creditworthy LPs default on capital calls.

A company subject to a secondaries transaction could have at least five layers of leverage. We investigate how coronavirus has tested these layers.

The London-based lender is working alongside a 'significant' American institutional investor, PEI understands.

The latest guidance from the LP body encourages GPs to disclose net IRR with and without the use of such facilities, in addition to the methodology used to reach that figure.