Funds finance in the spotlight: emerging developments in due diligence

This article originally appeared in the Journal of International Banking and Financial Law Volume 34, Issue 1, January 2019.

Key points

Practical tips to bear in mind when conducting due diligence for subscription line, NAV and hybrid facilities include:

• reviewing the limited partnership agreements and investor side letters for all fund vehicles including reading boilerplate clauses which may contain hidden restrictions
• agreeing a due diligence matrix and process at the outset in particular for NAV and hybrid facilities, and
• analysing the fund and holding structure to understand how the underlying investments are held and undertaking a cost/benefit analysis in determining what security to take/perfect.

Read the full article here.