• videocam Live Webinar with Live Q&A
  • calendar_month June 30, 2026 @ 1:00 PM ET/10:00 AM PT
  • signal_cellular_alt Intermediate
  • card_travel Banking & Finance
  • schedule 90 minutes

Lending to Private Credit Funds: ABL, Mezzanine and Other Facilities, Rated Notes, Partner Loans

Assessing Ability to Transfer and Modify Underlying Loans, Durational Risk, Remedies

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About the Course

Introduction

This CLE course will examine the structuring of loans for private credit funds, including NAV/ABL credit facilities, rated notes, partner loans, and other methods by which private lenders finance their lending capabilities. The panel will discuss special concerns with private credit funds, including the assignability and ability to modify or exercise remedies on underlying loan assets.

Description

Private credit funds employ a wide range of leverage strategies and products to facilitate investments (i.e., loans), improve returns, manage cash flows, and to achieve other goals. This program will provide an overview of the main types of leverage employed by private credit funds. It will also address key considerations for private credit fund managers/sponsors and their counsel, as well as lenders and lenders' counsel. 

Private credit funds often use subscription-backed credit facilities for numerous reasons, including as a bridge to capital calls or other permanent or asset-level financing. As funds mature beyond their investment or commitment periods, they then seek NAV credit facilities with availability based on the value of the underlying portfolio investments of the fund.

These two phases of financing have historically been distinct transactions. However, borrowers and lenders are increasingly exploring hybrid credit facilities which provide lenders with recourse to both uncalled capital commitments (the typical collateral under subscription credit facilities) and underlying investment assets (the traditional credit support under NAV credit facilities). It is beneficial for counsel to have a thorough understanding of subscription and NAV credit facilities and how components of each factor into a hybrid credit facility.

Listen as our authoritative panel discusses the different credit facilities available to private credit funds and the nuances of each. The panel will also address UCC perfection issues concerning the various interests pledged.

Presented By

Jan Sysel
Partner
A&O Shearman

Mr. Sysel has extensive experience representing sponsors, borrowers, arrangers, and lenders across the full range of products in fund finance and adjacent financing transactions. He advises clients on structuring, negotiating, documenting, and executing a broad spectrum of financings, including syndicated senior facilities, mezzanine facilities, and private debt placements. Mr. Sysel’s work spans unsecured and secured facilities with a particular focus on fund subscription, NAV and hybrid facilities, management company facilities, employee loan programs and other forms of investment fund leverage, as well as related transactions including back-leverage, rated note funds, collateralized fund obligations and, other securitized fund assets and bespoke structured financings. Mr. Sysel currently serves on the Fund Finance Association (FFA) U.S. Advisory Council, and he frequently speaks at FFA and other industry conferences. 

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Credit Information

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


  • Live Online


    On Demand

Date + Time

  • event

    Tuesday, June 30, 2026

  • schedule

    1:00 PM ET/10:00 AM PT

I. Brief overview of what is and is not a private credit fund

A. Publicly traded or otherwise registered funds (BDCs)

B. Investment in CUSIP or a mix of private and CUSIP loans

C. Warrants and equity co-investments as part of the primary investment strategy

D. Single-investor vehicles or JVs between institutions

II. Private credit strategies: direct lending, ABL, mezzanine, opportunistic/distressed investing, portfolio lender, and fund finance strategies

III. Target return profiles and how that can impact funds' use of leverage

IV. Ways that private credit funds use leverage

A. Subscription credit facilities

B. NAV/ABL credit facilities

C. Hybrids (mostly applicable in credit)

D. Rated notes/rated feeder structures

E. TRSs

F. Back leverage

G. Other products: GP/partner loans, management company lines of credit

V. Considerations specific to private credit funds

A. Ability to leverage capital commitments in the form of debt

B. Restrictions on assigning/pledging/transferring loans

C. 1940 Act or non-1940 Act fund

D. When to exercise which remedies (foreclosure vs. collateral manager replacement)

E. Ability to modify loans (restrictions thereon)

F. Challenges of providing revolver facilities/accessing quick capital for this purpose

VI. Best practices

The panel will review these and other important issues:

  • How does a fund's lending strategy affect its own financing options?
  • What types of credit facilities and other leverage options are available to private credit funds?
  • What questions or concerns should a private credit fund or its legal counsel, or a lender or its legal counsel, have with respect to a fund whose primary assets are its underlying loans?