Governmental Plan Investors Can Help Credit Facilities

Law360, New York (August 27, 2014, 10:33 AM EDT) -- A subscription credit facility, also frequently referred to as a capital call facility, is a loan made by a bank or other credit institution (a "lender") to a private equity fund (a "fund").[1] What distinguishes a subscription facility from other secured lending arrangements is the collateral package, which is comprised not of the underlying investment assets of the fund but, instead, of the unfunded capital commitments of the limited partners of the fund (the "investors") to make capital contributions when called from time to time by the fund's general partner....

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