How has the Fund Finance market remained so robust, and what’s next for your Fund Finance Team?

brickfieldBy brickfield07/10/20203 Minutes
Brickfield Fund Finance Recruitment Insights

There has been, for good reason, a severe amount of nervousness across the investment and legal world since COVID ushered in a “New Normal”. However, Fund Finance remains robust expressly because of market fluctuations and the ability of Funds and Lenders to work beyond maturation or limits to their capital commitments.

Flexibility has always been a by-word for good recruitment, but asset and financial managers haven’t necessarily had flexibility on their side…until now. With morale rising, especially in core industry across the UK and other regions, firms need to prepare to take advantage of investment opportunities as they arise quickly.

For an example, as July has shown, there is a slow but definitive uptick in some core UK industries such as manufacturing, where demand is increasing and turnover is high. 89% of UK businesses were in operation at the end of June, projections are rising and PMI’s are neutral.

The future of Fund Finance is healthy, but it is changing.

With significant churn comes challenges, and Funds are already reacting to changes imposed by restrictions on investments by looking at the positives – NAV credit facilities are giving Lenders and Funds optimism and security, and finding specialists who understand the potentials and risks of basing credit extensions on the net asset value of a Fund’s portfolio is becoming increasingly important.

Funds and Lenders will need to familiarise themselves quickly to the specifics and nuances of NAV credit facilities and having dedicated and experience legal counsel will be vitally important in securing your short term health, and long term plans.