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ARTICLE · 05 FEBRUARY 2025

Fund Finance 2025

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In this chapter, we will discuss what constitutes "umbrella facilities" (including how they compare and contrast with more standard fund finance facilities)...

United KingdomFinance and Banking
Richard Fletcher
Richard Fletcher
Yagmur Yarar
Yagmur Yarar

Overview

In this chapter, we will discuss what constitutes "umbrella facilities" (including how they compare and contrast with more standard fund finance facilities) and explore the pros and cons of using these products from the perspective of a sponsor. We will also identify the types of funds that typically utilise umbrella facilities, and discuss the outlook for the future of umbrella facilities in the market.

Description of umbrella facilities

A standard fund finance facility involves a single fund (or several parallel funds, each referred to in this chapter as "a fund") as borrower(s), with the lender(s) providing a single revolving facility, or sometimes both a revolving facility and a term facility, on a committed basis under a single facility agreement to that fund only. The fund can use these facilities for any permitted purpose in the usual way, with multiple drawdowns, repayments and redrawings (in the case of a revolving facility) depending on the

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