Client Need:
MUFG Investor Services Expertise:
Better Outcome:
A highly flexible umbrella subscription line, with standard agreement terms, that accelerates deal flow and approvals across three jurisdictions.
A global private markets investment manager with $720 billion+ in total capital wanted to streamline its subscription financing model to increase overall borrowing and save time executing a greater number of deals, while reducing execution risk, cost, and resources.
Our Fund Finance team tailored a specific product to meet the client’s needs. We held extensive internal sessions followed by in-depth, onsite conversations with the client to design a flexible, multi-jurisdictional set of standard lending terms and language. The result: A new umbrella subscription line tailored to the client’s requirements that helped extend a strong relationship.
The open-ended umbrella subscription line featured standardized agreement terms, no financing caps, and no time limits. It allowed the client to submit multiple deals and enables our firm to lend to fund structures domiciled in Luxembourg, Ireland, and the Cayman Islands. The transactions were evaluated individually and funded, in multiple currencies, according to our usual lending metrics.
Transactions are submitted and approved without renegotiating a new facility agreement for each deal. Key commercial terms of each individual deal are negotiated in a short form “sub-facility request,” while umbrella facility covers the legal, operational, and regulatory terms across all deals. This faster, more efficient process delivers consistency and parity of terms for both parties, with new visibility for lending across nearly all the client’s business verticals.
The client achieved:
Additional benefits:
“Together, we built a flexible, umbrella structure with standard terms that helps the client grow faster and close more deals without renegotiating each one. By putting real balance sheet behind it and deepening the relationship, we’ve financed more transactions and broadened our work with them across private credit, infrastructure, and asset servicing.”
Ben Griffiths Global Head of Fund Finance, MUFG Investor Services
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