Covid-19: Funding options for closed-ended fund sponsors

As we ease out of lockdown, closed-ended fund sponsors (GPs) can expect to face a more active third and fourth quarter. We anticipate GPs needing to think about further capital injections for investee companies, at a time where finance sponsors are looking carefully at covenants and institutional investors are fielding drawdown requests simultaneously from all of their GPs.

This note sets out the obvious (and less-obvious) funding options for GPs, which some sponsors might want to start considering ahead of the autumn.