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Fund Finance Insights: Subscription Line Pricing Stabilizes in First Half of 2024

Published July 31, 2024

Against the backdrop of the regional banking crisis, rising interest rates, a challenging exit environment and difficult fundraising, pricing in subscription secured credit facilities saw double-digit percentage increases in applicable margins, upfront fees and unused fees throughout 2023. However, the first six months of 2024 have shown relatively stable pricing. Please click below to read further.

Authors:

Brent Shultz

Partner | Haynes Boone

Having negotiated and closed billions of dollars of complex debt financings, Brent Shultz helps companies in the banking, private equity, and energy industries serve their customers and employees, and thrive in any business environment.

Clients seek Brent’s representation in connection with fund finance, including capital commitment-secured facilities; energy finance, including reserve-based lending and credit facilities to midstream companies; cash-flow facilities, including investment-grade and other corporate finance transactions; and asset-based facilities, including asset-based lending, leveraged finance, acquisition finance, and project finance. Brent also handles restructuring, bankruptcy, and workout matters.

Brent’s problem-solving approach to financing transactions is informed by his prior work as a financial analyst and strategic planner at a major airline, where he advised senior management on major strategic initiatives. Clients trust Brent to listen closely to them, to understand their goals, and to execute their most important transactions in a smooth, practical, and business minded manner. In recognition of his professional excellence, Brent was named “One to Watch” in banking and finance by the 2020-2021 Best Lawyers, Woodward/White, Inc.,directory.

Brent serves on our pro bono committee, representing clients in veterans’ matters and acting as counsel for The H.E.A.R.T. Program, a Houston nonprofit that helps adults with intellectual/developmental differences to achieve their potential. He also takes an active role in his community, holding leadership roles with his local church and volunteering with charitable organizations. He is the proud father of two daughters.

Partner Haynes Boone

Mei Zhang

Counsel | Haynes Boone

Mei Zhang is Counsel in the Finance Practice Group in the Dallas office of Haynes Boone. She focuses her practice on fund finance, real estate finance, energy finance, project finance and other commercial, secured and unsecured financial transactions. She represents international and domestic financial institutions and commercial lenders in structuring, documenting, and negotiating various commercial financial transactions. Prior to joining Haynes and Boone, Mei practiced law in China in the areas of real estate, mergers and acquisitions, foreign investments, joint ventures and corporate law. She worked at a major international law firm in Beijing and one of the biggest U.S. asset investment and management companies in Shanghai.

Counsel Haynes Boone

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