Structured Credit
Akin’s Structured Credit practice marries powerhouse investment management, financial services regulatory, tax, private equity and financial restructuring teams with one of the most sophisticated finance teams in the market.
We represent many of the market’s most active collateral managers, issuers, CLO lenders, investors, fund sponsors and other industry participants in financings and acquisition transactions involving a full range of conventional and esoteric asset classes, such as:
- U.S. and European CLO transactions, including new issues, refinancings, resets, re-issues, and related warehouse financing arrangements
- Warehouse financing arrangements for collateral originated in unconventional asset classes
- Regulatory capital transactions, including rated note feeder funds and other “CLO-like” structures designed to facilitate fund investments by insurance companies
- Fintech and other marketplace lending transactions
- Asset manager M&A transactions
Our roots in the investment management world are deep and expansive. We have long partnered with many of the world’s leading credit, private equity, hedge and other alternative investment firm sponsors to structure their asset management and investment operations, capitalize and finance themselves, advise on executive compensation arrangements, deploy capital and restructure investments around the world.
Our clients benefit from our holistic understanding of credit markets, the global regulatory landscape for investment managers, our cutting-edge tax practice and our depth of experience in the intricate interplay between structured finance vehicles and the distressed landscape.
For our collateral manager clients that are part of a broader diversified credit or private equity platform, we partner with their legal and compliance teams in drafting and maintaining policies and procedures that take into account complex conflicts of interest analyses and evolving SEC regulations, and assist in SEC examinations.
In advising our fund-affiliated clients, we combine our structured credit expertise with unparalleled market and industry knowledge gained from representing large institutional and entrepreneurial fund sponsors and managers in the formation of private equity, hedge and hybrid funds, as well as general partners in strategic relationships and co-venture arrangements.
Services In-Depth
Collateralized Loan Obligation (CLO) Transactions
Our signature approach to CLO representations combines current market insights, deep industry knowledge, continuous extensive experience dating back to the “CLO 1.0” era and a commercial approach to addressing evolving regulatory and compliance matters. Bringing all this to bear, we seamlessly execute transactions, often as “deal counsel”, while helping our clients stay ahead of rapidly changing regulation in multiple jurisdictions.
Our collateral manager representations include league table-leading industry veterans, start-ups forming a platform for the first time and every type of institution in between. We advise on every aspect of CLOs, including warehouse financing arrangements, capital structuring for loan tranches, refinancing and “reset” transactions, and structuring platforms for compliance with risk retention regulation in the U.S., the E.U. and the U.K., the Volcker Rule and other applicable compliance objectives. We also have extensive experience in CLO manager acquisition transactions.
In structuring CLOs, we further distinguish ourselves from the market by leveraging the strength of Akin’s broad investor-focused platform, including:
- Investment Management – With more than 40 years of experience in the private funds industry and our finger on the pulse of regulatory developments, collateral managers rely on our in-depth understanding of every aspect of their business. The resources we bring to bear keep them on the path to success with their own client base.
- Tax – Akin has created many “first-of-a-kind” tax-efficient structures for sponsors of hedge and private equity funds around the world. Our tax lawyers work closely with our investment management team and have unparalleled experience representing investors in CLOs because of our extensive hedge fund client base and global relationships.
- Financial Restructuring – We draw on the extensive experience and market intelligence of our distressed and special situations lawyers to increase flexibility in CLO indentures. For collateral managers, this synergy helps maximize recovery values in the restructuring process. The marriage of these skill sets enables us to guide clients and minimize downside risk.
- Public Law and Policy – The market continues to navigate legal and regulatory changes, such as those effected by the Volcker Rule, global risk retention requirements and similar regimes that often drive CLO market trends. We have the largest public policy team of any global law firm–a proven asset to our collateral manager clients as we proactively monitor emerging legislation, rules and regulations, and advocate for industry best practices.
Marketplace Loans
Our lawyers have deep experience in marketplace lending transactions. We advise issuers and sponsors in all aspects of securitizations of small business receivables and other asset-based financings, including warehouse facilities, refinancing transactions, establishing revolving pool securitizations and structuring transactions for compliance with global risk retention and other applicable regulations in a rapidly evolving legal and regulatory landscape. We also represent fintech companies and investors in connection with purchases of and investments in marketplace loan portfolios.
Other Asset Classes
We represent sponsors of securitizations of, and form joint ventures designed to invest in, portfolios of esoteric asset types, including limited partnership interests (CFOs), real estate development finance loans, and student loans, among others. Our lawyers also have broad experience in alternative investments and credit opportunities. Of critical importance to clients on the cutting edge of law and finance, we leverage our global resources and experience in cross-border transactions, asset-backed finance and debt capital markets transactions in the United States, Europe and Asia.
