Full Description
The first-off-the-press Pink Book, the 2017 first edition, included 14 expert analysis chapters, half of which were fully dedicated to subscription finance. Hybrid and NAV facilities were covered in two chapters. Like a family photo, this 10th edition captures the development of fund finance from then to now: breadth has expanded, demonstrated by what has become an industry viewpoint and 31 expert analysis chapters. Depth has also increased, with expert insights becoming more specialized and focusing on narrow, practical subjects. Finally, as this 10th edition makes clear, fund finance in 2026 encompasses far more than subscription finance.
These changes correspond with the day-to-day realities in the market. The recession in fund distributions extended into 2025, resulting in private market fundraising again lagging the 2021 high watermark for a fourth consecutive year. On the fund side, further scaffolding was built on sourcing capital from insur-
ance, retirement, and wealth channels. Sponsors also drove significant growth in financing linked to assets outside of conventional subscription collateral.
On the lender side, the expansion of capital sourcing beyond bank balance sheets continued steadily, although the trend is often not visible and is therefore difficult to measure. The number of subscription facilities with a term loan component syndicated to a non-bank lender increased, and cash securitization, risk transfer transactions, and monoline guarantees all gained momentum. Time will tell how the newly diversified lending base influences facility terms and pricing.
While the market conditions that led to these developments in fund finance will undoubtedly change, the advancements are here to stay. Sponsors and lenders both benefit from increasing flexibility in what is financed and how lending capital is sourced.
For those writing their own first chapter in a career in fund finance, the increased level of sophistication can be daunting, but it should also be encouraging. In an age of increased automation that is already reshaping commoditized products and processes, the fund finance evolution away from off-the-shelf answers will continue to reward humans who can integrate an understanding of a fund structure, sponsor preferences at a particular moment in time, the available collateral package, a responsive menu of structural options, and a network full of conventional and unconventional lender relationships. The time invested will be worthwhile, and the Pink Book an essential resource.
We sincerely thank all the contributors for sharing the benefit of their experience and valuable insights. We also thank Global Legal Group Ltd. for their continued support and partnership.
And special thanks to Chris van Heerden and the Cadwalader team for their help and support over the years to make this the best legal guide in fund finance.
Please enjoy this 10th edition.
Contents
Introduction
Wes Misson
Cadwalader, Wickersham & Taft LLP
Industry Viewpoint
1 Stability in volatility: the countercyclical role of fund finance
Dr. Mick Young
JPMorganChase
Expert Analysis Chapters
13 NAV and hybrid fund finance facilities
Leon Stephenson
Reed Smith
27 Collateral damage: what not to overlook in subscription line and management fee line facility diligence
Anthony Pirraglia, Peter Beardsley & Richard Facundo
Loeb & Loeb LLP
39 Derivatives at fund level
Jonathan Gilmour, Elinor Samuel & Tom Purkiss
Travers Smith LLP
49 Subscription facilities - a blossoming bouquet
Kathryn Cecil, Jons Lehmann & Jan Sysel
Fried, Frank, Harris, Shriver & Jacobson LLP
58 Financing a new generation of Regulated Funds: a borrower's perspective
Ashley Belton Gold, Adam Z. Risell & Adam S. Lovell
Simpson Thacher & Bartlett LLP
67 NAV facilities - the investor's perspective
Patricia Lynch, Patricia Teixeira & Justin Gaudenzi
Ropes & Gray LLP
74 Enforcement: analysis of lender remedies under U.S. law in subscription-secured credit facilities
Ellen G. McGinnis, Richard D. Anigian & Emily Fuller
Haynes and Boone, LLP
93 The continuing use of preferred equity in private equity net asset value facilities
Meyer C. Dworkin, David J. Kennedy & Kwesi Larbi-Siaw
Davis Polk & Wardwell LLP
100 Acquisition financing techniques in the fund finance context
Matt Worth, Douglas Murning & Brian Foster
Cadwalader, Wickersham & Taft LLP
105 Umbrella facilities: pros and cons for a sponsor
Richard Fletcher & Yagmur Yarar
Macfarlanes LLP
115 Side letters: pitfalls and perils for a financing
Thomas Smith, Margaret O'Neill & John W. Rife III
Debevoise & Plimpton LLP
125 Fund finance lending in Cayman, Luxembourg and Ireland: a practical checklist
James Heinicke, David Nelson, Jad Nader & Laura Holtham
Ogier
138 Assessing lender risk in fund finance markets
Robin Smith, Dylan Wiltermuth, Nick Ghazi & Holly Brown
Carey Olsen
151 Fund finance facilities: a cradle to grave timeline
Chu Ting Ng & Brendan Gallen
Reed Smith
161 Securitisation: subscription lines and credit NAVs
Adam Burk & Ian Luby
Travers Smith LLP
171 Fund finance unlimited: asset-based liquidity structures of Cayman Islands funds
Dr. Agnes Molnar & Richard Mansi
Travers Thorp Alberga
182 Credit support in fund finance transactions - equity commitment letters and fund guaranties
Sherri Snelson, Emma Russell, Dylan Glazier & Juliesa Edwards
White & Case LLP
193 Collateralised fund obligations
Christopher P. Duerden, Arina Lekhel, Anthony Lombardi & Eric Zeng
Dechert LLP
205 Innovative rated note structures spur insurance investments in private equity
Pierre Maugüé, Ramya Tiller & Christine Gilleland
Debevoise & Plimpton LLP
215 Financing secondary fund acquisitions
Ron Franklin, Jinyoung Joo & Carolyn Sarif-Killea
Proskauer
223 Preferred equity primer - expanding the financing toolkit
Ravi Chopra, Robert Emerson & Ed Saunders
Goodwin
232 Data privacy and cybersecurity considerations for private fund sponsors during lender due diligence
Matthew D. Bivona, Corinne C. Musa, Natasha G. Kohne & Trevor L. Vega
Akin
242 Understanding true leverage at the fund level: a European market and sector approach
Michel Jimenez Lunz, Antoine Fortier Grethen & Eva Chiolo
SJL Jimenez Lunz
250 Crossing borders, financing funds: global perspectives on common fund finance tools
Mei Mei Wong, Ryan Moreno, Charlotte Lewis-Williams & Soumitro Mukerji
DLA Piper
257 The fund finance market in Asia
James Webb Travers Thorp Alberga
Ian Roebuck Baker McKenzie
265 Securing success: key considerations for account security in fund finance transactions
Benjamin Berman, Jeremiah Wagner, Christopher Armstrong & Donald Cooley
Latham & Watkins
273 Financing for continuation funds: a practical guide to market trends, opportunities and issue spotting
Fiona Cumming & Parisa Clovis
A&O Shearman
280 The pervasive intersection of securitisation and fund finance
Alex Martin, Claire Bridcut & Oliver McBain
Milbank LLP
287 CLO equity funds: structure, strategy and liquidity solutions
Caroline Lee, Kevin Cassidy, David Mullé & Sagar Patel
Seward & Kissel LLP
295 ESG in fund finance - where are we now?
Lyndsey Mitchell, John Maciver & Hayden Morgan
Pinsent Masons LLP
306 Liquidity at the top: opportunity and complexity in GP financings
Ron Franklin, Philip Kaminski & Joseph O'Brien
Proskauer
Jurisdiction Chapters
314 Australia
Tom Highnam, Rita Pang, Jialu Xu & Nick Swart
Allens
326 Bermuda
Matthew Ebbs-Brewer & Arielle DeSilva
Appleby
334 British Virgin Islands
Andrew Jowett
Appleby
343 Canada
Michael Henriques & Kenneth D. Kraft
Dentons Canada LLP
350 Cayman Islands
Simon Raftopoulos & Georgina Pullinger
Appleby
359 England & Wales
Ian Callaghan, William Evans & Shao-Ling Angoh
Linklaters LLP
370 France
Meryll Aloro
Dentons
378 Guernsey
Jeremy Berchem
Appleby
386 Ireland
Kevin Lynch, Ian Dillon & Ben Rayner
Arthur Cox LLP
403 Italy
Alessandro Fosco Fagotto, Edoardo Galeotti & Valerio Lemma
Dentons
411 Japan
Takashi Saito, Yuki Taguchi & Naoya Hara
Nishimura & Asahi
420 Jersey
Paul Worsnop, James Gaudin, Simon Felton & Daniel Healy
Appleby
426 Luxembourg
Vassiliyan Zanev, Marc Meyers & Maude Royer
Loyens & Loeff Luxembourg SARL
437 Mauritius
Malcolm Moller
Appleby
443 Netherlands
Gianluca Kreuze, Michaël Maters & Ruben den Hollander
Loyens & Loeff N.V.
452 Scotland
Andrew Christie, Dawn Reoch & Ruaridh Cole
Burness Paull LLP
459 Singapore
Jean Woo, Danny Tan, Jake Sng & Hanyin Huang
Ashurst LLP
467 Spain
Jabier Badiola Bergara & Adelaida Torres Rovi
Dentons
476 USA
Jan Sysel, Zahra Sowder & Anže Molan
Fried, Frank, Harris, Shriver & Jacobson LLP
