FUND FINANCE
Fund finance
Our fund financing team works hand-in-hand with the investment funds team to ensure a global and comprehensive approach in connection with fund financing work.
Why our Fund Finance Team
We advise both lenders and borrowers on subscription lines, NAV-backed facilities, GP lines and security packages, combining technical fund knowledge with financing expertise.
Integrated Fund & Finance Expertise
Our fund financing team works hand-in-hand with the investment funds team for a comprehensive approach to fund financing matters.
Lender & Borrower Representation
We advise both lenders and borrowers — drafting and negotiating financing documentation and security packages tailored to fund structures.
Our clients
We have extensive experience advising clients (both borrower and lender) in connection with fund financing transactions, which range from subscription line, asset backed (NAV based), or GP line credit facilities to umbrella facilities and the related security packages (including guarantees).
Our services
When acting on the side of both the lender and the borrower on a financing transaction, we carry out a due diligence of the fund documents, which will typically cover the following items:
Interaction between the general partner, the AIFM and/or investment/portfolio manager, delegation of rights by the general partner (especially as regards entry into financing transactions and exercise of capital call rights to limited partners) and any impact on the security package structuring, corporate authorisations and the financing documentation
Cross-collateralisation between parallel funds and co-investment vehicles
Security perfection issues (e.g. location of bank account and governing law applicable to the security over such bank account, sub-deposit of assets subject to security and assessment of potential impact on governing law of security and/or perfection formalities) and notification to limited partners for security over undrawn commitments
Restrictions in limited partnership agreements on granting security or guarantees to the lender
Restrictions in subscription agreements and side letters on effective enforcement of security package (e.g. rights of counterclaims of limited partners, restrictions as to exercise by lender of capital call rights)
Restrictions in depositary/AIFM/investment or portfolio management agreements on granting security or guarantees to the lender (e.g. request for prior consent of depositary, pre-existing right of pledge of depositary/AIFM/manager)
For the lender, our fund financing team role also includes advice on, drafting and negotiation in the financing documentation of representations, undertakings and events of default specific to the type of fund involved (e.g. RAIF, SIF, SICAR, Part II UCI). We will also draft and negotiate the security package and provide financial collateral arrangements advice and analysis.
When instructed for the borrower, our fund financing team will negotiate the financing documentation, with a specific focus on the representations, undertakings and events of default. Our team will also assist borrowers in the negotiation of the security package.
In addition, at the set-up stage of the fund, our fund financing team assists our investment funds team to anticipate in the fund documentation the recourse to third-party financing (and the granting of security) by building in the provisions usually expected by lenders in financing transactions.
We have deep knowledge of industry trends and have established relationships with all major law firms in Luxembourg.
Latest insights & Work Highlights
Publications and representative fund finance mandates.
2025 Cross-Border Distribution Conference: Seizing new opportunities for growth — Posted 14.05.2025
Etude Breininger assisted Dextra Partners with the establishment and final closing of Co-investment Fund VII — Posted 07.08.2025
Advising Citigroup, in respect of Luxembourg law matters, for the sale of Citi Global Alternatives, LLC to iCapital — Posted 05.06.2025
Etude Breininger assist TPG Angelo Gordon with successful closing of its largest ever Real Estate Fund — Posted 27.05.2025
Blackstone announces $10.6 Billion Final Close of Largest Ever European Real Estate Drawdown Fund — Posted 14.04.2025
Advising Oakley Capital on the formation and fundraising of Oakley Capital VI — Posted 08.04.2025
TESTIMONIALS
What Others Say About Us
Recognition from clients and representative market commentary.
We have deep knowledge of industry trends and established relationships with major law firms in Luxembourg.
Firm statement
Practice note
Related expertise
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