Subscription Line Lending: Due Diligence by the Numbers

Financial institutions engaged in subscription line lending must take a fundamental and systematic approach to due diligence. After all, the foundation of subscription line lending is the strength of the commitment of the investors to fund their capital commitments when called. Well-drafted and enforceable fund and investor documents are the secret sauce for success in these markets, and this chapter provides a road map for the due diligence critical to building a solid structure of legal agreements that ensures the enforceability of investors’ obligations in a default scenario.