ABCs of Fund Finance: Subscription Lines and Asset-based Facilities

Subscription lines for private equity and other draw-down/capital call funds continue to grow in use as the number and size of these funds have increased dramatically. In certain circumstances, subscription lines have been used for longer term borrowings.

At the same time, many funds will often employ portfolio-level leverage through asset-based credit facilities, in some cases secured by limited partner interests and other illiquid assets.

In this webinar Matthew Kerfoot, Dechert LLP, and Michael Peterson and Shiraz Allidina, from Citco Capital Solutions, discuss the following:

• How to properly structure a subscription line
• Increased scrutiny from limited partners on subscription lines
• Transitioning from a subscription line to an asset-based line
• Key terms and structures in asset-based credit lines
• Unique structuring and collateral issues presented by illiquid collateral