Wealth Finance Brief – January 2021
Locations
Our first briefing paper of the new year comes from Fieldfisher's newly launched Funds Finance practice group.
The team achieved a Tier 3 ranking in the most recent Legal 500 guide and are well placed to advise on transactions in this rapidly growing area. In this paper, they set out the key considerations for Limited Partnerships raising debt secured against the uncalled financial contributions of their limited partners.
Our second article concentrates on lending to private sector Occupational Pension Schemes. Banking partner Andrew Evans and Pensions partner David Gallagher take us through the practical considerations for lending to these highly regulated schemes and provide food for thought for any lenders looking to make funds available.
In our third article, we look at the disclosure requirements for borrowers in the context of single stock lending and securing debt against a borrower's listed shareholding. In the context of a post-Brexit world, the article serves as a timely reminder that borrowers and lenders may now need to comply with both EU and UK legislation.
Lastly, we bring our attention to the Art world with two articles authored by our leading Art Law team. In the first of these, we set out our top tips for borrowing and lending against art; in the second we focus on how buyers, sellers and exhibitors can avoid unnecessary stress when it comes to art insurance. For more information on Fieldfisher's dedicated Art Law team and for further insights on this specialist area, please visit our Art Law web page.
If you wish to discuss any of the issues raised in the articles, please get in touch with me or anyone else in the Private Wealth team using the contact details below.
Anna Crosby
Senior Associate
Briefing Paper: Funds Finance from a borrower's perspective – an English law technical guide
Growth in funds finance over the past decade has been immense – for example, private equity fundraising in the US surged with annual figures climbing from less than $60 billion in 2010 to a record $301 billion in 2019. Although growth in the last year may have been tempered by COVID-19, the expectation is that this source of finance will be reinvigorated again.While there are a number of funds finance guides aimed at lenders, we felt it may be useful for a guide aimed at borrowers as this is a specialised area of law and different considerations apply. Download Funds Finance from a borrower's perspective here…
Lending to Pension Schemes
Lending to Occupational Pension Schemes is a highly regulated activity. In this article we provide lenders with a due diligence check-list for providing finance to private sector Occupational Pension Schemes. From considering the scheme's Statement of Investment Principles, to ensuring a scheme won't breach any tax law limits on the amount they can borrow, the article adds some colour to the crucial documents that lender's (or their lawyers) will need to review and the key provisions of a scheme's Trust Deed and Rules that will need to be considered. The article also sets out certain risk management tools in relation to this type of lending, together with practical considerations for drafting. Download Lending to Pension Schemes here…Single Stock Lending and Persons Discharging Managerial Responsibility
In the Private Wealth sphere, single stock lending (where a bank provides a loan secured by a Borrower's shareholding in a publicly listed company) is not uncommon. There are, however, some potential pitfalls and points to be aware of when entering into such loans, especially where the Borrower is connected to the listed plc. This article seeks to outline the potential disclosure requirements for Borrowers triggered by the granting of such share security under the Disclosure Guidance and Transparency Rules (DTRs) and the UK Market Abuse Regulation (UK MAR) as well as the issues for lenders in making these secured loans. Read more…Tips for borrowing and lending against Art
Art has long been a well performing asset class but when it comes to lending against art, we see many of the same issues come up repeatedly. In this first Art-related article, we set out a number of practical but often overlooked points to be addressed in any art loan. Read more…Art insurance: top tips for avoiding claim catastrophes
Insurance is one of those key points (particularly from a security perspective) and in our second Art-focussed paper, we discuss recent examples of matters the Fieldfisher team have dealt with in the context of Art insurance claims. We also provide some top tips for avoiding art insurance mishaps. Read more…We will be back next quarter with another edition of the Wealth Finance Brief.
Fieldfisher's Private Wealth Team
Phil AbbottOliver Abel Smith
Anna Crosby
Andrew Evans
Richard Gibbard
Matt Hinxman
Hannah Rowbotham