• Governmental Plan Investors and the Borrowing Base
  • August 13, 2014 | Authors: Zachary K. Barnett; John A. Janicik; Kristin M. Rylko; Matthew A. Simmons
  • Law Firm: Mayer Brown LLP - Chicago Office
  • A subscription credit facility, also frequently referred to as a capital call facility (a “Subscription Facility”), is a loan made by a bank or other credit institution (a “Lender”) to a private equity fund (a “Fund”). 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 (“Capital Commitments”) of the limited partners of the Fund (the “Investors”) to make capital contributions (“Capital Contributions”) when called from time to time by the Fund’s general partner (the “General Partner”).