The long-term growth of the asset management industry has resulted in a significant increase in both the variety of fund structures (including open-end funds, closed-end funds, collective investment funds, common trust funds, group trusts, private equity funds, funds of funds, hedge funds and other pooled investment vehicles), and the overall number of funds. Fund sponsors and asset managers are constantly seeking credit to help meet liquidity needs or to provide leverage (gearing). On the one hand, funds may need or desire additional liquidity to, among other things, clear and settle trades, make redemptions (daily, in the case of open-end funds, or periodically, in the case of other funds), provide commercial paper back-up or, in the case of private equity funds, bridge capital calls; having credit available for liquidity will generally allow a fund to remain more fully invested than it otherwise might. On the other hand, funds may choose to employ leverage to boost investment returns, redeem auction rate or other preferred securities, retire other debt, or fund self-tenders.
In 2016 we closed 23 new money credit transactions totaling in excess of $6.4 billion, and in 2015 we closed 29 new money credit transactions totaling in excess of $7.7 billion.
Bryan Cave Leighton Paisner continues to experience dramatic growth in its involvement in these credit transactions on behalf of financial institutions and various funds and fund complexes. We have a thorough understanding of the needs and limitations of these funds and the banks, broker-dealers and others who supply credit to them, as well as knowledge and experience with the relevant legal documentation and terms, including the Investment Company Act of 1940, the Investment Advisers Act, ERISA, margin regulations, Articles 8 and 9 of the Uniform Commercial Code, the Internal Revenue Code, UCITS regulation, SICAV regulation, other various regulatory schemes, and offshore financing issues generally.
Bryan Cave Leighton Paisner's Fund Finance Team brings together lawyers from various disciplines and jurisdictions with an in-depth understanding of the related issues to best meet the needs of our clients, whether they are:
The Fund Finance Team continues to meet the needs of the firm's clients by: