Hybrids, NAVs and FX lines – Is Asia Ready to Embrace Alternative Fund Finance Solutions?

Walkers participated in the recent first Asia-Pacific Fund Finance Symposium in Hong Kong. The conference was extremely well attended by industry participants from around the globe, successfully spotlighting Asia as a key growth market for fund finance.

Hong Kong Finance partner, Paul Aherne took part in a panel discussion on "Hybrid, NAVs, FX Lines and Alternative Products". This was a particularly well received panel as it discussed some of the new and innovative financing solutions being offered and how they may be utilised by Funds at different stages of their life-cycle to enhance liquidity and flexibility. The panel focused on facilities that allow Funds to borrow based on their uncalled commitments as well as, or solely, based on the value of their underlying assets. These 'hybrid' or 'NAV' facilities are undoubtedly more challenging from a credit perspective than pure subscription line financings (the traditional fund finance solution). However, funds are showing increased interest in these facilities which allow them access to financing after the end of the investment period. This type of facility can be extremely helpful not only to provide liquidity for the ongoing management of the underlying assets but also to allow the manager to leave remaining commitments of investors uncalled (which might be desirable to free-up investor cash for investment in future funds).

We look forward to continuing to assist our fund and lender clients in all aspects of fund finance and to participating in future Fund Finance Association events in the region and globally.

CAYMAN ISLANDS
Melissa LimPartnerT +1 345 814 4512melissa.lim@walkersglobal.com

HONG KONG
Paul AhernePartnerT +852 2596 3308paul.aherne@walkersglobal.com

SINGAPORE
Richard SiddlePartnerT +65 6595 4678richard.siddle@walkersglobal.com