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CRESTLINE FUND LIQUIDITY SOLUTIONS

 

Crestline's Fund Liquidity Solutions Group provides bespoke financing solutions to mature private equity funds, private assets trapped in vehicles seeking liquidity and investment vehicles requiring restructuring and/or additional management support. These financing solutions are designed to meet an array of investor, manager and portfolio company’s needs including liquidity and follow-on growth capital.
  • Preferred equity and structured credit solutions for GPs/Fund Managers seeking capital secured by portfolio assets
  • LP or GP led fund restructurings
  • Direct secondary purchases of tail-end assets
  • Replacement GP or Co-GP engagements
Portfolio Financing: Crestline’s Portfolio Financing strategy provides bespoke financing to allow private equity managers to provide liquidity to their LPs or provide selective follow-on growth capital to portfolio companies, which may enhance the future NAV of the fund that receives financing. Portfolio financing provides a means by which the manager can provide liquidity to existing LPs without prematurely selling portfolio companies, which may enhance the IRR and DPI of the fund receiving financing. Portfolio financing also allows private equity managers who no longer have the ability to call capital to meet the follow-on capital needs of their portfolio companies without diluting current LPs. Lastly, portfolio financing can also be deployed by younger funds directly to non-creditworthy companies in the portfolio with an enhanced support or guaranty from the fund.

 

Fund Restructuring: Crestline’s complementary Fund Restructuring strategy provides custom restructuring solutions with enhanced governance designed to satisfy the various needs of PE funds and their stakeholders, including liquidity solutions for LPs desiring an exit, follow-on capital for portfolio companies, balance sheet restructuring, and additional management support for the enhancement of asset values.

 

For more information, please contact David Philipp, dphilipp@crestlineinc.com or Amit Mahajan, amahajan@crestlineinc.com

 

OVERVIEW
PORTFOLIO FINANCING TRANSACTIONS

 
OVERVIEW
FUND RESTRUCTURING TRANSACTIONS
INVESTMENT PARAMETER

 
INVESTMENT PARAMETER
SIZE

  • $10mm - $250mm

 

TERM

  • 1-5 years

 

GEOGRAPHY

  • Primarily North America and Western Europe

 

INDUSTRY FOCUS

  • Primary: traditional industries and operating companies

  • Secondary: real estate and infrastructure

 

PORTFOLIO CHARACTERISTICS

  • Multiple remaining investments

  • Mature companies, cash flow positive

  • Minority or majority shareholding

  • Debt or equity stakes in portfolio companies

 
SIZE

  • $20mm - $250mm

 

GEOGRAPHY

  • Primarily North America and Western Europe

 

INDUSTRY FOCUS

  • Primary: traditional industries and operating companies

  • Secondary: real estate and infrastructure

 

FUND CHARACTERISTICS

  • GPs may be unable to access required capital to support portfolio companies

  • Certain LPs may desire an exit while others wish to remain invested

  • GP interests may be misaligned with LPs due to being out of the carry

  • Fund may need additional investment management / GP support

 
STRUCTURE

 
STRUCTURE

  • Provide capital to a fund or directly to one or more underlying companies (with fund-level guaranty)

  • Flexible Structure: Senior Debt or Preferred Equity

  • Flexible Interest: PIK, Cash

  • Flexible Principal Repayment: Amortizing or Contingent on exit of portfolio

 

  • Fund Restructuring - inject new capital into an existing fund while co-managing assets

  • Direct Secondary - purchase targeted assets into a new vehicle. Existing LPs generally have an option to participate in new structure

  • Co-GP / Replacement GP Engagements - provide new or complementary management resources and governance

 
USE OF PROCEEDS

 
USE OF PROCEEDS

  • Early distribution to LPs

  • Support follow-on investments

  • Buyout LP interest of departing LPs

  • Buyout GP interest of departing GPs

  • GP management company related working capital or acquisition financing

  • Bridge to close secondary PE deals, especially Fund Restructurings

 

  • Buyout LP interest of departing LPs

  • Support follow-on investments

  • Restructure balance sheet of fund and/or portfolio companies