Structured fund and asset-backed financing solutions for PE

Based on the most helpful WSO content, a sell-side role that provides structured fund and asset-backed financing solutions for private equity funds typically involves creating and offering financial products that are secured by a pool of assets or equity interests. Here's a breakdown of what such a role might entail:

1. Structured Fund Solutions:

   • Capital Call Facilities: Lines of credit that private equity funds can draw on to make investments before calling capital from their limited partners.
   • NAV Facilities: Loans based on the net asset value of the fund's portfolio, providing liquidity or leverage for the fund.
   • GP and Management Company Facilities: Financing solutions for the general partner or management company tied to their needs, such as liquidity for operations or co-investments.

2. Asset-Backed Financing:

   • Securitization: Pooling various types of contractual debt such as mortgages, auto loans, or credit card debt obligations, and selling their related cash flows to third-party investors as securities.
   • Portfolio Financing: Loans secured by a diversified portfolio of investments held by the private equity fund.
   • Subscription Line Financing: Credit lines secured by the unfunded commitments of the limited partners in a fund.

3. Risk Management:

   • Hedging Strategies: Implementing interest rate, currency, or commodity hedges to manage the risks associated with the financing solutions provided.

4. Advisory Services:

   • Financial Modeling and Analysis: Assisting private equity clients with the financial modeling of structured products.
   • Regulatory Compliance: Ensuring that financing solutions comply with relevant regulations and laws.

5. Client Interaction:

   • Relationship Management: Building and maintaining relationships with private equity clients to understand their financing needs.
   • Deal Structuring: Working with clients to structure deals that meet their specific requirements.

6. Market Analysis:

   • Research: Keeping abreast of market trends and regulatory changes that could impact structured financing solutions.

In such a role, you would likely work closely with private equity clients to understand their investment strategies and liquidity needs, and then tailor financing solutions that align with their objectives. It's a role that requires a strong understanding of both the credit markets and the private equity industry, as well as the ability to structure complex financial products.

Sources: What are the Roles within Real Estate Private Equity?, Buy-side vs sell-side path to credit funds, Accounting vs Finance: Part 1 – Career Paths, Accounting vs Finance: Part 1 – Career Paths, Private Funds Group (CS/UBS etc)