HSBC and ICG’s Groundbreaking US$240 Million Capital Call Facility

The US$240 million capital call facility provided by HSBC is the first capital call facility structured as a securitization by ICG and essentially has all the attributes of a more standard capital call line structure. The transaction marks a trend for increasing demand for sophisticated fund finance solutions, including embracing securitization as a viable financing option. This groundbreaking transaction developed a methodology and structure to securitize the fund’s exposures to investor capital calls, progressing the market in the use of securitization technology in fund financing transactions whilst supporting the Fund’s objectives.

Commenting, Steve Burton, Treasurer of ICG said, “At ICG we’re constantly looking to innovate in the fund finance arena as the market evolves. We see this structure as a key product in accessing liquidity in what could be an uncertain regulatory landscape, providing cost benefits for our funds.”

Victoria Lindsell, Global Head of Structured Finance at HSBC said, “HSBC are excited to further develop our longstanding relationship with the ICG team, and to innovate in our product offering using structured financing techniques.”

Latham & Watkins advised ICG on the transaction. The Latham team was led in London by partner Jeremiah Wagner, with associates Dan Marcus and Leah Morgan Parle, and in Washington, D.C. by counsel Donald Cooley, with associates Jen Goldshtein and Josh Haberl.