Kanjilal Funds and Securities House - Global Financial Solutions Provider’s Post

Explore the evolving world of fund finance in the latest blog post on Loan Market Association (LMA). Authored by Scott McMunn, the article takes a deep dive into how fund finance products are reshaping the loan markets, offering innovative liquidity solutions and facing intensified regulatory scrutiny. Discover the role of these financial tools in managing the substantial capital flows within the industry and their impact on investment strategies and market stability. https://lnkd.in/dTBQQ4TY #FundFinance #FundFinancing #FundFinancer

Advisory Programs are used to manage a client's portfolio for an annual fee based on assets under management (AUM). This fee typically covers administrative, commission, and management expenses. For many, especially those who trade securities actively, an Advisory Program may be less expensive than a brokerage account, which charges commissions on a per-trade basis.

Why Insurance CIOs are increasingly attracted to NAV Financing? Insurance Asset Risk’s Webinar on NAV Financing covers insurer-specific considerations and investment benefits, the growth potential for the asset class as well as an overview and purposes of NAV Financing. To hear the perspectives of Laura Mason (CEO L&G Capital ), Nenna Gilmour-Platt (Head of Investment Strategy, Just Group) and Thomas Doyle (Partner, Head of NAV Financing, Pemberton) click here: https://lnkd.in/eFkYzdzQ #NAVFinancing #privatecredit #investmentsolutions #insurancecompanies

Advisory Programs are used to manage a client's portfolio for an annual fee based on assets under management (AUM). This fee typically covers administrative, commission, and management expenses. For many, especially those who trade securities actively, an Advisory Program may be less expensive than a brokerage account, which charges commissions on a per-trade basis.

I remember in 2006 Matt Hansford trying to explain NAV financing to a room of simple Leveraged Finance folk :) Nearly 20 years later the market has evolved massively albeit some of the key constraints have lingered. For those of you interested in the Fund Finance space this is a great summary of current dynamics and opportunities. #fundfinance #securitisation #NAVfinance

Reposting this insightful update from ARC Ratings on the evolving Fund Finance market. It explores this dynamic market, shedding light on future trends and developments. This is the first installment of a two-part series dedicated to Fund Finance. Don't miss out on this deep dive into the market's evolution and what's on the horizon! 🌟 #FundFinance #Investment #FinanceTrends #ARCRatings

#Private_Equity_Fund_Structures: Private equity funds are typically structured as limited partnerships. This structure involves two main parties: #General_Partners (GPs): The fund managers who make investment decisions. #Limited_Partners (LPs): The investors who provide capital. Then comes how we in #Custodian_Banks Support Private Equity Funds! Here we do: #Safekeeping_of_Assets We securely hold and protect the fund's assets, including cash and securities. #Fund_Administration We handle day-to-day operations like accounting, financial reporting, and investor communications. Regulatory Compliance We help funds navigate complex regulations and reporting requirements across jurisdictions. #Cash_Management We manage cash flows, including capital calls from LPs and distributions to investors. #TransferAgency Services We maintain investor records and facilitate subscriptions and redemptions. Let's understand little more on this: As a custodian bank, we act as a vital behind-the-scenes partner for private equity funds. Our services allow GPs to focus on their core competency: making investment decisions and managing portfolio companies. For example, when a fund makes a new investment, we: Process the #capitalcall to LPs Ensure regulatory compliance for the transaction Update fund accounting records Provide detailed #reporting to both GPs and LPs Our technology platforms offer real-time visibility into fund performance, helping GPs make informed decisions and providing LPs with transparency. Moreover, as private equity funds often invest internationally, we leverage our global network to facilitate cross-border transactions and ensure compliance with local regulations. By providing these comprehensive services, custodian banks like ours play a crucial role in the private equity ecosystem, enabling funds to operate efficiently and focus on generating returns for their investors. #PrivateEquity #CustodianBanking #FinancialServices #InvestmentManagement #FundAdministration #AssetSafekeeping #CapitalMarkets #FinancialInfrastructure #WealthManagement #InstitutionalInvesting #FinTech #RiskManagement #FinancialCompliance #CrossBorderInvestments #AlternativeInvestments

I recently had the opportunity to invest in a Collateralized Fund Obligation (CFO) and wanted to share some insights about this type of investment. A Collateralized Fund Obligation (CFO) is a type of structured financial product that pools together various investment funds and then issues securities backed by these funds. Here’s a detailed breakdown: Key Features of Collateralized Fund Obligations (CFOs): Structure: Special Purpose Vehicle (SPV): A CFO is typically created through an SPV, which is a separate legal entity set up to handle the assets and issue the securities. Tranches: The securities issued by the CFO are divided into different tranches, each with varying levels of risk and return. Common tranches include senior, mezzanine, and equity tranches. Underlying Assets: The underlying assets in a CFO are usually a diversified pool of investment funds. These can include hedge funds, private equity funds, or mutual funds. The performance of the CFO depends on the collective performance of these underlying funds. Risk and Return: Senior Tranches: These are considered the safest and have the highest credit rating. They receive priority in payments but offer lower returns. Mezzanine Tranches: These carry more risk than senior tranches but offer higher returns. Equity Tranches: These are the riskiest and typically the last to receive payments. However, they offer the highest potential returns. Benefits: Diversification: By pooling various funds, CFOs provide investors with diversified exposure to multiple asset managers and strategies. Customized Risk/Return Profile: Investors can choose tranches that match their risk tolerance and investment goals. Risks: Complexity: CFOs are complex financial instruments that require sophisticated analysis to understand. Performance Risk: The returns depend on the performance of the underlying funds, which can be unpredictable. Liquidity Risk: CFOs may not be as liquid as other securities, making them harder to sell quickly if needed. Conclusion: Collateralized Fund Obligations are sophisticated investment vehicles that offer a way to gain exposure to a diversified pool of investment funds with tailored risk and return profiles. However, due to their complexity and inherent risks, they are typically more suitable for institutional investors or those with advanced knowledge of financial products. #PrivateEquity #Investment #Finance #WealthManagement #FinancialEducation #CFO #CollateralizedFundObligations 

Over the past two decades, the Fund Finance market has seen rising demand, fueled by growing interest in alternative investments. This sector has become integral to the fund industry, maturing to meet increasingly complex financing needs and including more flexible solutions like Net Asset Value Facilities and Hybrid Facilities beyond the established Subscription Credit Facilities. With anticipated growth in fundraising activity, the outlook for Fund Finance remains positive. ARC Ratings' latest article delves into this market evolution, offering insights into future trends and developments. This is the first article of a two-part series about Fund Finance. Read the full report at https://lnkd.in/dkUTRZXh #FundFinance #SubscritptionCreditFacilities #Sublines #SCF #NetAssetValue #NAVFacilities #HybridFacilities #Alternatives #MarketCommentary

In the first of a two-part series, ARC Ratings has published its recent article on the Rise of Fund Finance to provide the background required ahead of its further publications. Why are focussing on Fund Finance? --> Fund Finance is a broad term which contains multiple different product types (Subscription Lines, NAV Facilities are the primary two). With the implementation of Basel 3.1, the historically low loss product of Fund Finance will be treated as an unrated obligation and subject to significantly higher risk weights compared to that of Banks internal models. Ratings are the answer. Particularly in the case of Subscription Lines where the facilities provide a practical benefit to Fund Managers and LPs alike. #FundFinance #SubscriptionLines #Securitisation #StructuredFinance #Ratings #Basel3.1 #EndGame