KBRA Assigns a Rating to La Banque Postale's Participation in a Capital Call Facility to Five Arrows Secondary Opportunities VI
29 Mar 2024 | London
KBRA UK (KBRA) assigns a rating to La Banque Postale's ("LBP") participation in a capital call facility in the form of a committed, secured facility (the “Facility”) to Five Arrows Secondary Opportunities VI ("FASO VI" or the "Fund"). The Facility is provided by a consortium of lenders including LBP. The rating assigned was requested by LBP as a participating lender in the transaction. Neither the Fund nor any of their associates have requested this report or the rating, and this report has not been prepared for or approved by any of them. KBRA has assigned an A- rating and stable outlook to LBP's €100 million commitment to the €200 million Facility.
The Lenders have a first priority security interest to the uncalled capital commitments of the Fund, including security over the right of the general partner to make capital calls. The Borrowing Base is divided into Qualifying Investors and Designated Hurdle Investors. Initially, the uncalled commitments test is calculated against the commitments of the Initial Qualifying Investors only. Once 40% of commitments have been called, all investors, including the Designated Hurdle Investors, are included in the Borrowing Base of the uncalled commitments test. The uncalled commitments test requires the Fund to maintain uncalled commitments from Qualifying Investors at threshold levels of 1.30x the amount of Fund indebtedness, or 1.60x once 40% of the capital commitments have been called. To date, FASO VI has raised €813 million in commitments from approximately 92 investors.
The Fund is managed by Five Arrows, the alternative assets arm of Rothschild & Co with offices in Paris, London, Luxembourg, New York, Los Angeles and San Francisco. As of August 2023, Five Arrows had an AUM of €23 billion. The Five Arrows Secondary Opportunities team has closed 76 transactions across five vintages, having a 20-year investment track record. Since inception, Five Arrows Secondary Opportunities has focused its investment strategy on mid-cap secondary direct transactions in healthcare, business services, software & IT sector in Europe and US.
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