Credit Funds: Weathering the Economic Storm

We are delighted to bring you this bumper edition of Spotlight Magazine in the midst of the choppy times we are all facing.

There is a storm brewing in the economic landscape in which we find ourselves, but these uncertainties often bring out the best bright new ideas and a drive for innovation. Our first article takes us through the rise of artificial intelligence in the funds arena with new fund mechanics such as the MFN process, being automated and then made even smarter.

We will then take you on a road trip through the perfect storm of alternative lending from a small specialist AIFM’s perspective, navigating its way through AIFMD II, to a teach in on the energy and renewables sector whose growth is forecast to increase five-fold by 2030 - providing private credit investors with the opportunity to invest in investment grade/crossover assets. We will also delve into the vital terms that lenders should now negotiate to ensure they are fully protected in these troubled waters.

The rise of ESG last year has provoked even more thoughtful debate and we summarise the FCA’s new proposal on sustainability disclosure requirements including a general “anti-greenwashing” rule which FCA regulated managers will now have to be wary of.

We then stop-over in the US to grab an update on the new marketing rules targeting SEC registered advisers that has rocked the asset management industry, with managers racing to comply before it took effect at the end of 2022. We pause in Europe for an update on the changes a year on from the implementation of the new Securitisation Law in Luxembourg which has resulted in many CLO managers looking to relocate their CLOs to Luxembourg. Finally, we round off the road trip examining a new vehicle, this time launched by the tax man: the QAHC, a truly innovative vehicle aimed at keeping the UK competitive postBrexit.

As a souvenir of our road trip, we invite you to download our annual report on Continuation Vehicles which outlines key market terms observed over the last year. We hope you enjoy this edition, and please feel free to reach out to any of our contributing authors on the topics covered.

Click here to read this edition of Spotlight: Credit Funds