BarbriSFCourseDetails
  1. keyboard_arrow_leftBack

Course Details

Course Information
  • smart_display Format

    Live Online with Live Q&A

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Banking and Finance

Date & Time
  • event Date

    Thursday, September 18, 2025

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

Early Bird Pricing!
MSRP
$347.00
$297.00
Save $50.00

Discount expires 8/13/25

This course is $0 with these passes:

CLE
ALL

This CLE webinar will explore the increasing use of equity commitment letters (ECLs) in fund finance. The panel will discuss structuring considerations and explain the differences between ECLs and guaranties. The panel will also examine key terms found in ECLs, negotiation strategies for structuring these transactions, and ways to mitigate risks.

Faculty

Lindsay Karas Stencel
Partner
Thompson Hine

Ms. Stencel is a partner in the firm’s New Ventures practice. She advises entrepreneurs, investors and fund managers on venture capital and startup matters, venture capital fund formation, mergers and acquisitions, corporate finance, federal and state securities filings and compliance, including public and private securities offerings, and corporate organization and governance matters. Prior to joining the firm, Ms. Stencel served as a partner and chief legal counsel at a Midwest-focused venture capital firm that invests in pre-seed, seed early stage and growth stage technology companies serving several industries. There, her efforts primarily focused on deal structuring, portfolio management, limited partner relations, fundraising and exit transactions.

expand_circle_down Expand to View Full Bio expand_circle_up Collapse Bio

Description

In the current fundraising environment, there has been an increased focus on credit support arrangements, particularly ECLs. As private markets and the fund finance industry continue to evolve, there has been a heightened focus on credit support packages that lenders rely upon to underwrite these investments.

An ECL is typically structured as a commitment by a parent fund to contribute capital or other financial support to a subsidiary that is a borrower under the relevant financing transaction. ECLs provide additional credit support to borrowers and add a layer of protection for lenders to ensure the borrower will fulfill its obligations under the credit facility. 

Unlike a guaranty that is issued in favor of a lender, an ECL benefits the ECL beneficiary or subsidiary. To provide additional protection to a lender, the ECL should state that the lender is a third-party beneficiary to the ECL or that the lender retains the same rights as the ECL beneficiary. 

Listen as our authoritative panel provides practice tips for structuring and documenting ECLs in fund finance transactions. The panel will discuss the common variations of ECLs and the pros and cons of an ECL under different financing scenarios.

Outline

I. Uses of ECLs in fund finance transactions: trends and developments

II. Pros and cons of ECLs

III. Differences between ECLs and guaranty agreements

IV. Structuring and negotiation considerations

V. Key terms

VI. Lender protections

VII. Risk mitigation

VIII. Enforcing an ECL

IX. Practice pointers and key takeaways

Benefits

The panel will discuss these and other important considerations:

  • What are the latest trends and developments in the use of ECLs in fund finance transactions?
  • What are the appropriate circumstances when an ECL should be used?
  • What are factors to consider when negotiating and structuring an ECL?
  • What are the benefits and risks associated with ECLs?
  • How does the lender enforce an ECL to repay a credit facility?