Collateral
Collateral on an SBL/PLC facility
What is a pledge of the borrower's diversified pool of marketable securities
This entity manages the fund and makes all investment decisions
What is the General Partner (GP)?
This is the standard lending value of equities and fixed income for a PLC
What is 50% and 90%+, respectively?
The requirement for borrowers to hold a portion of their loan size in liquid assets at the bank
What is unencumbered liquidity?
This is the type of credit facility a subscription line is - the kind you can draw down, repay, and draw down again, similar to a credit card
What is a revolving line of credit (revolver)?
What is the uncalled capital commitments of the fund's limited partners?
These investors commit capital to the fund but have no management authority.
What are Limited Partners (LPs)?
This ratio measures a borrower's ability to cover debt payments from available income or cash flow
What is the Debt Service Coverage Ratio (DSCR)?
This is the use of proceeds on a PLP facility.
What is funding capital calls to pledged funds?
What are investments/deals and fund fees/expenses?
Collateral in a co-invest / PLP loan
What is the borrower's interest in the fund?
This governing document sets out the GP/LP relationship, including capital call mechanics and funding obligations.
What is the Limited Partnership Agreement (LPA)?
This general term describes a financial or operational condition a borrower must maintain under the loan agreement.
What is a covenant?
This is the agreement the management company makes with the lender, specifically to support junior employees of the firm
What is a collateral buyback?
This is how a subscription facility loan gets repaid - the source of the cash that pays the lender back.
What is capital call proceeds from LPs?
Collateral for an unsecured loan
What is none - There is no collateral, the loan relies solely on the borrower's creditworthiness, cash flow and net worth?
This term describes the total dollar amount LPs have promised to a fund, whether called or still outstanding?
What is committed capital (capital commitments)?
This is a legal claim on colleral.
What is a lien?
This is the typical repayment requirement on a PLP loan.
What is 100% return of capital + 50% return on capital (profits)?
This is the typical range of time a single draw on a subscription facility can remain outstanding before the lender requires repayment - typically 90, 180, or 365 days
What are draw tenors?