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Steven Rutkovsky Quoted in Three-part Series on Subscription Credit Facilities

Practices: Finance, Fund Finance

Finance partner Steven Rutkovsky is quoted extensively in three articles in a series published by The Hedge Fund Law Report titled “Understanding Subscription Credit Facilities.”

The first installment, published on Mar. 1, provides background and a summary of the key aspects of subscription credit facilities. Mr. Rutkovsky describes the distinguishing features of subscription credit facilities, including the type of collateral, interest rate and fees, availability and borrowing-base provisions.

The second installment, published on Mar. 8, discusses the primary advantages of subscription credit facilities to fund sponsors and investors, and describes the principal legal documents that govern them. Mr. Rutkovsky is quoted on the advantages of borrowing under a subscription credit facility, which include the ability to quickly draw capital to close on investments at a relative low cost.

The third and final installment of the series, published on Mar. 15, reviews the guidance issued by the Institutional Limited Partners Association (ILPA) on the most controversial aspects of subscription credit facilities. Mr. Rutkovsky comments on response to the ILPA guidelines from the private equity industry: “the ILPA Guidance and general media reports surrounding subscription credit facilities have raised the awareness of investors as to how these facilities are being used. As a result, some limited partners have been seeking modest restrictions and additional disclosures from the general partner about these facilities and how they impact a fund’s IRR.”

For more insights on subscription credit facilities, the ILPA guidelines and related topics, please visit Ropes & Gray’s Fund Finance page.

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