Wed, Jan 23, 2019
A A A
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: The Jeff Bezos divorce: $136bn and Amazon in the middle, Bridgewater Associates partners with consulting firm, Cyprus no longer Mediterranean haven for Russian businesses, Goldman Sachs on course to launch cash management in mid-2020[more]

    The Jeff Bezos divorce: $136bn and Amazon in the middle From Mint: The announcement by Amazon founder Jeff Bezos, the world's wealthiest man, and his wife that they will divorce has captivated the imagination -- how will they split his giant fortune, estimated at $136 billion? And what wi

  2. Institutional Investors: Institutional investors plot large property allocations, Qatar Investment Authority aims to reach $45bn in U.S. investments, Louisiana Teachers assigns $200m, SoftBank move to slash WeWork investment sends shockwaves[more]

    Institutional investors plot large property allocations From FT: Institutional investors plan to make large allocations to property in 2019, taking them closer to their desired targets. At least €72.4bn of new capital is expected to flow into real estate this year, according to a

  3. Legal: Attorney sues after Tampa hedge fund goes under, Hedge funds showing increased interest in litigation claims, Argentina sued again by hedge fund on bonds tied to GDP growth[more]

    Attorney sues after Tampa hedge fund goes under A Tampa hedge fund company may be in legal trouble after the firm that was holding its money was sued by a lawyer who claimed "gross negligence" caused the fund to lose tens of millions of dollars. James Cordier, the head of optionseller

  4. Activists: MGM hands board seat to activist hedge fund Corvex's Meister, PG&E shareholder BlueMountain challenges bankruptcy plans, Gulfport pledges share buybacks after hedge fund demand, PPG Paints itself into a corner[more]

    MGM hands board seat to activist hedge fund Corvex's Meister From Reuters: MGM Resorts International has struck a deal with hedge fund Corvex Management's founder, Keith Meister, to give him a board seat, one week after a rival activist investor was seen building a position in the casino

  5. Opinion: Can you beat Warren Buffett's investment returns using data?[more]

    From Seeking Aplha: The ideal hedge fund portfolio would use leverage to take a variety of uncorrelated risks that all cancel each other out, leaving the fund with little to no net exposure. For example, if you could invest in enough items with no correlation to the business cycle, like earthqua