Validus offers a tailored Fund Finance Advisory service in which we support Sponsors by leveraging our unique position in the market. Our longstanding relationships with GPs have enabled us to develop a deep understanding of their requirements for both hedging market risk, as well as utilizing financing facilities.

Our access to information and insights across fund structures, financing agreements, and innovation in the credit space enable us to provide our clients with a panoramic view on market conditions specific to fund finance.

Although we can provide a fully outsourced solution, our main focus is to act as an extension to our client’s own resources and skillsets.

We cover the whole range of fund finance structures, including:

  • Subscription Line / Equity Bridge facilities
  • Asset-backed /NAV lending
  • Hybrid facilities
  • Liquidity and working capital lines
  • GP Commitment facilities
  • Bespoke / customised solutions

Initial Strategy

With our deep relationships on the risk management side, we have a strong understanding of our clients’ financing needs across the fund life cycle. Our clients use a full range of financing tools, giving us a unique view of optimal strategies and structures. We can:

  • Review current financing strategy across Funds and provide insight on best practices
  • Offer market intelligence on key considerations when choosing a financing strategy
  • Provide an educational overview of existing and new financing tools

Implementation

Once an optimal structure is identified, we work to source ideal lending partners until term sheets are received. We provide ongoing advice for key negotiation points throughout the documentation process. We offer:

  • Market screening for new facilities, advising on optimal structure and lender(s)
  • Benchmark analysis on bespoke language in long form documentation
  • Ad-hoc assistance until facility execution

Maintenance

We work with our clients to identify areas of support after facilities have been executed. We ensure efficient processes and procedures for the monitoring and reporting of facilities, including:

  • Ongoing support of compliance certificates and covenant tests
  • Building and upkeep of borrowing base models
  • Providing overview of market pricing
  • Providing market updates on key trends and themes