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Ed Ford Quoted in Secondaries Investor on the Evolution of Financing for Continuation Vehicles
Secondaries and Funds Partner Ed Ford was quoted in a Secondaries Investor article titled “How much is too much leverage in CVs?” The piece explores the evolution of financing tools that have become increasingly embedded in continuation vehicles (CVs), highlighting that the perception of facilities such as subscription lines and net asset value loans for CVs has shifted from being regarded as negative or neutral to being viewed as positive or neutral in recent years.
Commenting on the growing comfort of lenders for the systematic change in the availability of debt for CVs, Ed Ford explained that, “once relatively reluctant to lend to these vehicles, lenders have become increasingly at ease in doing so, particularly as the quality of CV assets has improved over the past few years.” He added that, “the increasing size of CVs – which in turn has created a broader base of investors – is further bolstering lender comfort. If the underlying collateral underpinning subscription facilities becomes more diversified, it reduces lenders’ concentration risk.”
To read the full article, please click here (subscription required).