Fund Finance

Our global Fund Finance Practice is dedicated to providing unparalleled value and client-centric services to a wide array of clients in the financial industry. Whether you are a financial institution requiring counsel on fund financing-related transactions, an established fund manager seeking to optimize financing structures or a burgeoning fund navigating initial financing needs, our team of seasoned attorneys is poised to assist you. With our global presence and deep industry knowledge, we stand ready to guide you through the complexities of fund financing with precision and efficiency.

Our capabilities:

Who we can help:

We leverage our extensive experience and deep understanding of fund finance intricacies to deliver tailored solutions and strategic guidance for our clients' unique challenges. Our holistic approach encompasses structuring fund facilities, negotiating terms and navigating regulatory landscapes to meet specific needs. Through proactive counsel and cutting-edge insights, we empower our clients to confidently navigate the complexities of fund finance transactions and achieve their desired outcomes.

Lenders

• Tailored Financing Structures. Our team assists lenders in structuring and negotiating syndicated and bilateral financing arrangements that align with their risk tolerance, return objectives and regulatory compliance requirements (including regulatory capital maximization). Whether providing subscription line credit facilities or other financings (including synthetic leverage via swap and repo), we leverage our market insight and transactional experience to craft financing structures that optimize lender protections and enhance credit quality.
• Due Diligence and Risk Management. Paul Hastings conducts thorough due diligence on fund assets, investor base, fund governing agreements, side letters and other contractual frameworks, as well as assist in regulatory compliance matters to mitigate credit risk and protect lenders' interests. Our attorneys analyze collateral packages, support assessment of creditworthiness and evaluate potential risks, providing lenders with actionable insights and risk mitigation strategies to support informed decision-making.
• Documentation and Negotiation. We draft and negotiate financing documents, including credit agreements, security documents, intercreditor agreements, hedging documentation, master swap and repo confirmations, and ISDA/MRA/GMRA/GMSLA platform documentation to establish clear rights and obligations for lenders and borrowers. Our team collaborates closely with clients to tailor financing terms, covenant packages and default provisions to meet their specific needs and objectives, ensuring alignment with market standards and best practices.

Borrowers

• Strategic Financing Solutions. Paul Hastings advises borrowers on financing strategies that optimize fund liquidity, operational flexibility and cost efficiency. Whether structuring subscription line credit facilities, NAV or asset-based facilities, synthetic back-leverage or other hybrid financing structures, our team draws from our deep bench of industry experience and innovative thinking to develop financing solutions that support borrowers' investment objectives and growth initiatives.
• Negotiation and Execution. We represent borrowers in negotiations with lenders, leveraging our transactional experience and market insight to achieve favorable financing terms and conditions. Our attorneys advocate for borrowers' interests while maintaining constructive relationships with lenders, facilitating efficient deal execution and minimizing transactional friction.
• Compliance and Regulatory Matters. Our team provides strategic guidance on regulatory compliance matters, including securities laws, banking regulations, 1940 Act considerations and tax considerations to ensure that financing transactions meet legal and regulatory requirements. We assist borrowers in navigating complex regulatory landscapes and implementing compliance policies, enabling them to operate with confidence and integrity.

Select Representations

• Administrative agent and arrangers in the origination of multiple multi-currency, subscription secured credit facilities made available to U.S. and international sponsors in the aggregate amount of $10.7 billion.
• Administrative agent and arrangers in the origination of a $3.5 billion syndicated, multi-currency, subscription secured credit facility made available to a $10 billion global direct lending fund.
• Administrative agent and arrangers in the origination of multiple subscription secured credit facilities in the aggregate amount of greater than $1 billion.
• Global secondaries-focused sponsor in the origination and closing of multiple subscription secured credit facilities in the aggregate amount of greater than $12 billion.
• Global multi-strategy focused sponsor in the origination and closing of multiple subscription secured credit facilities in the aggregate amount of greater than $10 billion.
• Banking institutions and non-banking financial institutions in the acquisition of an interest in multiple subscription secured credit facilities in the aggregate amount of greater than $5 billion.
• Hedging bank in the issuance of and closing of multiple feeder hedging arrangements.
• Non-banking financial institutions in the acquisition of interests in multiple NAV facilities.