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Employer with magnifying glass exploring application papers
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.
covid
As an example of the practice surfaces, an industry body is warning other companies not to use the covid-19 outbreak as an excuse to try and raise additional finance through flexible documentation.
Coronavirus impact on markets
Drawdowns could enable managers to pre-empt liquidity issues arising from the pandemic but may compound the problem for certain LPs.
fundraising
It’s a booming market that’s been synonymous with the banks in recent years, but a new source of capital has appeared on the scene.
Illustration of bundles of cash
Growing demands from GPs and investors have seen the market evolve rapidly in recent years.
Debt line
GPs can avoid potential liquidity issues by drawing down loans early and performing greater due diligence on their lenders.
Illustration of a man balancing on a dice
GPs must think carefully about how fund-level leverage affects performance at the fund level and, by extension, their own stability, writes veteran investor Neil Harper.
Under the hood
PEI caught up with Fi Dinh, who led ING's first ESG-linked revolving credit facility, to discuss fund terms, interest rate calculations and sustainability targets.
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