Innovative Rated Note Structures Spur Insurance Investments in Private Equity (Volume 40, Number 4–April 2024)
Author: Ramya S. Tiller.; Pierre Maugüé.; Christine Gilleland.
Source: Volume 40, Number 04, April 2024 , pp.33-40(8)
Abstract:
As insurance companies look for opportunities to invest in a diversified portfolio of funds, and funds look for ways to access additional capital, there is increasing demand for innovative rated note structures. Such investments are typically structured in one of two ways: (1) through a rated note feeder fund for investment in a single fund or (2) through a special purpose vehicle structure for investment in a portfolio of funds, creating a fund of funds structure. This article discusses how insurance investments in private equity are typically structured via collateralized fund obligations and rated feeders and key regulatory and other trends relating to the same.Keywords: Structured Notes Obligations; Feeder Fund; Parallel Fund; Subscription Line Facilities; Decoupling of Debt and Equity Commitments; Equity Credit Support
Affiliations:
1: Debevoise & Plimpton LLP (NY); 2: Debevoise & Plimpton LLP (London); 3: Debevoise (London).