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Abstract: 

Driven by market demand and by market and regulatory developments, private equity sponsors have used diverse creative approaches to meet needs for liquidity. The authors of this article discuss the ins and outs of five such methods, from subscription lines to back-leverage loans. They conclude that, going forward, private equity will have access to plenty of debt-based resources and can look forward to a continued stream of finance innovations.

Keywords: Subscription Lines; NAV Facilities; GP/Manager Facilities; Collateralized Fund Obligations (“CFOs”); Back-Leverage Loans

Affiliations:  1: Debevoise & Plimpton LLP; 2: Debevoise & Plimpton LLP; 3: Debevoise & Plimpton LLP.