Absolute Credit Series

In this episode of the Absolute Credit series, Kirkland partner Lindsay Trapp is joined by Global Head of Private Credit Marc Pinto of Moody’s Ratings to discuss key trends shaping the private credit and fund finance markets. They explore the continued growth in demand for ratings across fund finance products, the expansion of private credit into new asset classes and geographies, and the increasing convergence between fund finance andstructured finance. The conversation also covers evolving rating methodologies, the importance of transparency and information sharing, considerations for rated feeders and multi-asset structures, and how greater retail investor participation is influencing product development and regulatory focus.

In this episode of the Absolute Credit video series, Kirkland partners Lindsay Trapp, Bruce Gelman and Kate Luarasi discuss insurance-dedicated funds (IDFs) as an increasingly important capital-raising tool for accessing insurance company, high-net-worth and institutional capital. They explain how IDFs can be deployed alongside existing fund strategies to support platform growth, the tax and regulatory capital benefits using these structures, and other considerations like investor eligibility, investor controllimitations and diversification requirements.

In episode five of the Absolute Credit series, partners Lindsay Trapp, Jared Axelrod and Michael Urschel provide a comprehensive refresher on the U.S. risk retention rule. They review its origins in the Dodd-Frank Act, discuss the impact of the LSTA court decision on CLOs, and explore how self-liquidating financial assets and sponsor definitions affect compliance. The discussion also covers the application of risk retention to rated funds, CFOs and hybrid structures, with an emphasis on practical considerations, look-through analyses and evolving market practices.

In episode four of the Absolute Credit video series, partners Lindsay Trapp and Jared Axelrod cover collateralized fund obligations’ (CFOs) evolution in the private credit and fund finance markets. They examine how asset mix, cash flow generation and liquidity mechanics shape these deals, and discuss ratings and regulatory considerations as CFOs become increasingly popular hybrid financing tools among GP-led structures, including in fundraising and liquidity solutions.

In episode three of the Absolute Credit video series, partner Lindsay Trapp is joined by KBRA Chief Rating Officer Bill Cox to discuss key developments in the rated funds, feeder note and CFO markets. They explore the rapid growth and increasing complexity of rated fund and CFO structures, expanding asset classes and geographies, the rise of evergreen and perpetual vehicles, and how KBRA evaluates collateral, managers and structures as investor demand for private credit exposure continues to evolve.Read KBRA’s presentation.

In episode two of the Absolute Credit video series, Kirkland partners Lindsay Trapp and Jared Axelrod break down current dynamics in the CLO equity market, noting increased third-party equity activity at the warehouse stage, continued reliance on joint venture and multi-deal capital arrangements, and the growing importance of manager-originator structures amid evolving EU risk-retention rules. They highlight how regulatory shifts regarding the EU risk retention sole purpose test and seasoning requirements are shaping deal structures, as well as why EU compliance remains valuable for accessing global investors.

In this inaugural episode of our Absolute Credit series, Kirkland partners Lindsay Trapp and Kate Luarasi dive into the evolving world of rated fund structures, exploring the key differences between vertical and horizontal structures, the rise of new investor types, and the challenges that come with the attendant complexity, including MFNs and funding mismatches. They share insights on how these innovations target risk-based capital, draw other capital inflows, and give fund managers practical considerations and a look at where the market is headed.