Coronavirus

The traditional collateral for subscription credit lines, LPs' uncalled capital, has performed strikingly well, so far. But some lenders are re-evaluating the risk of these loans, and there is an increased focus on whether LPs have the incentive to meet capital calls for some funds.

Major lenders in subscription credit facilities reined in new lending shortly after the crisis began in March, focusing on existing clients and facing various constraints. Smaller banks stepped in to pick up new business they might otherwise not have been able to compete for.

Everyone in the subscription credit facility market is ‘busy’, but it is far from business as usual. Industry players wonder what the future of the sector looks like, and reveal critical changes that may suggest a new, if still evolving, normal for the market.

GPs are seeking fund term amendment requests to either add the ability to use fund-level leverage in general, or to expand their ability to put debt on the fund.

Private Funds CFO caught up with Houston-based EnCap Investments to hear about how the firm plans to re-integrate its staff back into the office.

Almost two-thirds of LPs are concerned about exceeding their policy target to private equity, according to a survey from the ILPA.

The crisis is presenting a variety of challenges for private equity, but fund administrators are quickly pivoting to the new business as usual.

Businesses with up to 15,000 employees are now eligible to apply to the Main Street Lending Program.

Two lawyers weigh in on facing the double-barreled challenge of covid-19; first preview of an upcoming guide to GP-led liquidity solutions from Proskauer.

CARES act has some significant benefits for PE; eFront study says NAVs to hold up in a downturn.