Sun, May 20, 2018
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

US Trust develops LP Lending

Thursday, February 01, 2018

Bailey McCann, Opalesque New York:

For hedge fund managers and high net worth individuals, a large percentage of personal wealth can be tied up in fund investments. US Trust, the private wealth management arm of Bank of America, has created a solution that it says can bridge the gap if short-term liquidity is needed. LPs can use their investment portfolio as collateral for a line of credit.

US Trust acts as the arranger for custom loan facilities based on the underlying investment portfolio and desired size of the loan. Typical terms are one to three years. Loans are granted with the approval of the hedge fund managers involved so that all parties understand what happens if a redemption occurs.

"We think the size of our facilities, combined with our customized platform and dedicated infrastructure make us stand out among providers of LP lending," says Kenneth Hollander, a senior vice president and structured credit executive at US Trust in an interview with Opalesque. In order to streamline the process, US Trust has worked with counsel to standardize the documentation needed to extend a line of credit and will work closely with outside counsel to create terms that work for both sides.

"We will work with LPs on custom facilities, depending on the situation," Hollander adds.

LP lending has emerged as a growing area of wealth management. Many of the big banks offer LP lending as a liquidity solution for high net worth individuals and hedge fund managers. Bu......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. News Briefs - Warren Buffett: Target date funds aren't the way to go, Cambridge Analytica could be reborn under a different name[more]

    Warren Buffett: Target date funds aren't the way to go Planning for retirement can be complicated and stressful. This is why target date funds - funds that are managed based on when you expect to retire - are so attractive. Over time, the balance of stocks, bonds and cash evolve automati

  2. Investing - Hedge funds hike Smurfit Kappa positions amid takeover deal hopes, Hedge fund IBV Capital digs deep to unlock long-term value in a competitive market, Eisman of 'The Big Short' fame recommends shorting Deutsche Bank[more]

    Hedge funds hike Smurfit Kappa positions amid takeover deal hopes From Two US hedge funds, Davidson Kempner and York Capital, have accumulated a combined 4.74 per cent interest in cardboard box maker Smurfit Kappa using financial derivatives. It comes as many investors cl

  3. Foundations of hedge fund managers gave big to controversial donor-advised funds[more]

    In the world of philanthropy and tax-deductible charitable giving, the explosion of donor-advised funds has touched off intense debate. Now, there is evidence that the DAF boom is being further fuelled by hedge fund foundation money. Four of the top five foundations that gave the most to large do

  4. Study: For hedge funds, smaller is better[more]

    From The smaller the hedge fund is, the better its performance is likely to be, according to a new study. The study - "Size, Age, and the Performance Life Cycle of Hedge Funds," released April 26 - sought to determine whether a hedge fund's size and age had any effect on i

  5. Hedge fund returns rose in April for first gain since January[more]

    From Bloomberg Hedge Fund Database shows returns flat this year - Currency strategies had the biggest monthly gain at 13% Hedge fund returns increased 0.78 percent in April, reversing two consecutive monthly declines. The swing of 134 basis points was driven by gains in all seven