As the private equity and fund finance markets continue to expand with new, innovative products, collateralized fund obligation transactions, or CFOs, are becoming increasingly popular. A panel of experts discussed the nuances of constructing CFOs, from the asset-based lending nature of the rated notes that underpin these deals to the complexity of cash flows, liquidity needs and legal considerations. With this deep dive into the world of these asset-backed securitized structures, it's no wonder the fund finance industry is abuzz with the emergence of CFOs. There is optimism that these structures will continue to develop as financing tools for both sponsors and investors and the market will continue to grow and mature over the coming years.
For more on CFOs, please check out the prior article and presentation from some of CWT's CFO experts here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
