Log in
Register
Search
Search titles only
By:
Search titles only
By:
Log in
Register
Search
Search titles only
By:
Search titles only
By:
More options
Toggle width
Share this page
Share this page
Share
Facebook
Twitter
Reddit
Pinterest
Tumblr
WhatsApp
Email
Share
Link
Menu
Install the app
Install
Forum Home
Law Firms
Wiki
Events
Deadlines
Members
Leaderboards
Apply to Paul, Weiss
Premium Database
Hey Guest, Happy Valentine's Day! Sending our 💙 this weekend. We're all rooting for you in your training contract journey.
TCLA Premium:
Now half price (£30/month). Applications, interviews, commercial awareness + 700+ examples.
Join →
Forum Home
Aspiring Lawyers - Applications & General Advice
Applications Discussion
TCLA Vacation Scheme Applications Discussion Thread 2025-26
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="xMontmorency" data-source="post: 223169" data-attributes="member: 32743"><p>You got it! I would recommend doing some more specific research into Weil to be sure - i.e. the details of the structured finance mandates it has worked on. The ranking's aren't that helpful.</p><p></p><p>NAV lending is usually medium term debt used by funds with a portfolio of assets, secured by the value of that portfolio. It could be used to fund underlying operations (maybe in real estate or infrastructure PE), but that's an expensive and inefficient alternative to just getting your portfolio company to take out a revolving credit facility. It's more likely to be used for a fund-wide iniative or to pay out LPs when you can't get any cash from your investments. That's why NAV financing is taking off right now - PE firms are struggling to exit investments and need to find ways to borrow to satisfy their investors.</p><p></p><p>Re CLOs: yes. It depends what kind of product we're talking about.</p><p></p><p>If the PE firm is directly taking out some form of structured finance, then it helps them because it might provide access to debt at cheaper rates or with better conditions attached - or maybe they just can't get an ordinary TLA or TLB.</p><p></p><p>If loans taken out by PE firms are being securitised to CLOs and other funds on a secondary market, it helps the PE firms because it creates greater liquidity in the primary market. The same syndicates of institutional and private creditors can keep on lending to PE firms engaging in LBOs since securitisation takes the risk associated with previous loans off their books and frees up capital for lenders to deploy. This is particularly important given the stringent minimum capital requirements for banks under the Basel II regulations.</p></blockquote><p></p>
[QUOTE="xMontmorency, post: 223169, member: 32743"] You got it! I would recommend doing some more specific research into Weil to be sure - i.e. the details of the structured finance mandates it has worked on. The ranking's aren't that helpful. NAV lending is usually medium term debt used by funds with a portfolio of assets, secured by the value of that portfolio. It could be used to fund underlying operations (maybe in real estate or infrastructure PE), but that's an expensive and inefficient alternative to just getting your portfolio company to take out a revolving credit facility. It's more likely to be used for a fund-wide iniative or to pay out LPs when you can't get any cash from your investments. That's why NAV financing is taking off right now - PE firms are struggling to exit investments and need to find ways to borrow to satisfy their investors. Re CLOs: yes. It depends what kind of product we're talking about. If the PE firm is directly taking out some form of structured finance, then it helps them because it might provide access to debt at cheaper rates or with better conditions attached - or maybe they just can't get an ordinary TLA or TLB. If loans taken out by PE firms are being securitised to CLOs and other funds on a secondary market, it helps the PE firms because it creates greater liquidity in the primary market. The same syndicates of institutional and private creditors can keep on lending to PE firms engaging in LBOs since securitisation takes the risk associated with previous loans off their books and frees up capital for lenders to deploy. This is particularly important given the stringent minimum capital requirements for banks under the Basel II regulations. [/QUOTE]
Insert quotes…
Verification
Our company is called, "The Corporate ___ Academy". What is the missing word here?
Post reply
Forum Home
Aspiring Lawyers - Applications & General Advice
Applications Discussion
TCLA Vacation Scheme Applications Discussion Thread 2025-26
Top
Bottom
This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
By continuing to use this site, you are consenting to our use of cookies.
Accept
Learn more…
