1H 2020 #PEFinanceMultiplier Summary

I hope you’re finding time to enjoy the summer as we enter month five of our “new normal.” For me, this means going back in time like Marty McFly from “Back to the Future”—comfortably relocated temporarily in Mission Viejo, Ca. where I grew up, queue Huey Lewis! Yes, the suburbs are IN… but I can’t wait to be back in NYC!

Despite 2020’s best attempts to throw a wrench into just about everything, we have not lost sight of the goal we set in 2019 to provide insights on the fund finance industry, and more importantly, to spark engaging conversations with many of you. 

 As we make the turn to the second half of 2020 (Can you believe it? Time flies when you’re in quarantine!), here is a quick look back at the articles we have published this year. As an added bonus, we’ve included a few guest pieces by other members of our team. 

The Impact of COVID-19 on Subscription Lines of Credit - Jeff and Scott

We shared some of COVID-19’s impacts on the private capital markets based on conversations with clients, colleagues and peers in the industry. Many of our views still stand from when we wrote this piece 4 months ago. Read here >

 The LPA and Investor Appetite for Subscription Credit Facilities - Jeff

Subscription facilities have many benefits, but with the rise in awareness of such innovative fund-level financing, LPs are beginning to grow cautious over the additional complexities and expense. What does this mean for LPA negotiations? Read here >

 Four Reasons Why the Right Cash Management Solution is Critical for a Private Equity Fund - Heli

Whether you are an emerging manager raising a fund or an established firm comfortable with your existing bank, it’s important to proactively work with a cash management team that will positively impact your business. Here are four reasons why >

 Awareness Heightens as PE Firms Defend Against Cyber Threats - Heli

As the majority of the workforce shifted to conducting business from home, companies also saw an aggressive increase in cyberattacks. While information about prevention has increased since March, there are some nuanced implications for PE firms. Heli shares a few top-of-mind concerns here. >

 “Sailor! I Order You to Give Me a Market Deal!”—The Subscription Credit Facility Market in the COVID-19 Era - Jeff

The term “market” has long been thrown around in subscription credit facility loan negotiations with the ease, but how is it possible to apply such a broad-brush stroke to each unique, handcrafted deal? We share our take on “market” and how to get back to the essence of the deal with insights from our friends Mike Mascia and Kurt Oosterhouse at Cadwalader, Wickersham & Taft here. >

Aftershocks and Opportunities: Distressed Funds Find the Way Forward - Scott

Since we are all curious to see what will happen in the special situation and distressed investing markets following the past few months of economic turmoil, we turned to some of the most active managers in PE to see what they are seeing, doing and thinking in this environment. Here is what we learned. >

And as always, we love the feedback! Keep the responses and comments coming—and be on the lookout for more from us soon.