US lawyers expect Wells Fargos
$6 billion acquisition of the subscription-lending portfolio of
WestLB to prompt a resurgence in subscription credit facility
use. Heres why.
The subscription credit facility
provides liquidity to funds and a lower default risk for the
lender than many other financial products.
A partner at a large corporate firm
in New York City said the market for the subscription credit
facility product had weathered the storm of the last
Generally, the credit is based upon investors who
provide capital commitments to the fund itself rather than the
fund, the partner said. Such investors tend to be
large institutions with...