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By Melinda PERERA Thibaud MULLER, Linklaters*
In the world of fund finance, investors are key players. Lenders examine investors closely, and investors, in turn, scrutinise the implementation of financings with equal rigor.
Investors through the lenders’ lens: subscription lines
The dominant fund financing product remains the capital call (or “subscription”) facility, a critical tool for General Partners (GPs) to manage cash flow and bridge the gap between deal funding requirements and the subsequent drawdown of investors’ commitments. The collateral taken by lenders is exclusively targeted at the uncalled commitments of investors (with security interests over the uncalled capital commitments and over...
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