NAV Lending for European Family Offices: Luxembourg Structures, Transfer Restrictions, Currency and Regulation NAV lending grew up in the United States, and most of what has been written about it assumes a US borrower, a Delaware fund and a New York law facility. A European family office holding private equity through Luxembourg vehicles has a different set of questions. Can a lender take security over an interest in a Luxembourg special limited partnership? Does AIFMD reach the borrower? What happens when the facility is in euros and the underlying funds are in dollars? Which regulator, if any, cares that a London lender is lending into Germany?
I write facilities of $10 million to $100 million and beyond for European and US borrowers, in USD, EUR or GBP, and these questions come up on most European transactions. What follows is how we approach them. Several of the points are legal ones, and I have tried to be careful about where general practice ends and local advice begins. Take the boundary seriously; the rules differ by jurisdiction and, in one case below, change on a known date. https://www.jdsupra.com/legalnews/nav-lending-for-european-family-offices-8522218/
JD Supra
NAV Lending for European Family Offices: Luxembourg Structures, Transfer Restrictions, Currency and Regulation
NAV lending grew up in the United States, and most of what has been written about it assumes a US borrower, a Delaware fund and a New York law facility.
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