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In IFLR, Ropes & Gray’s Private Investment Funds Lawyers Discuss The Current State of Private Debt Markets

Practices: Private Investment Funds, Credit Funds

Private investment funds partner Matt Judd co-authored a May 17 article published by International Financial Law Review (IFLR) which reviews the growth of the private debt market and the current climate amid changes brought by the Brexit and the Trump administration.

“Undeterred by the unexpected results in the Brexit referendum and the US presidential election, the private debt asset class has continued its onward march,” outline Mr. Judd. In the article, Mr. Judd discuss various “features of the way the private debt asset class is maturing from a fund structuring perspective,” highlighting that these “have contribute[d] to the asset class's appeal and durability in times of geo-political change.”

Issues covered in the piece include what is driving the continued growth of private debt, the current state of play, the diverse fund structuring options for sponsors, investment allocation issues, special purpose vehicles, most favored nation rights, differing expense and indemnification provisions, as well as what the shape of things to come may be.

“While it is impossible to predict the tax and regulatory environment in which private debt will operate in the future, or how the London hub for this growing asset class will be affected by Brexit, those managers who have embraced the multi-jurisdictional, multi-manager approach to their fund structures will be well placed to respond quickly to whatever is thrown at them,” state Mr. Judd in the article.

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