KBRA Releases Research—Private Credit: Feeder Fund Rated Notes—Squaring the Circle

KBRA releases research highlighting key legal considerations for feeder fund rated notes.

In a typical rated note structure, a feeder fund relies on debt and equity commitments provided by its investors to meet its obligations as a limited partner in a master fund. This KBRA report focuses on the tension that arises between the standards and documentation that apply to the rated debt issued by the feeder fund and the provisions that govern its limited partnership interest in the master fund.

The tension can be resolved with careful analysis. Consistent with the sustained development of the rated note market, KBRA observes a growing consensus on how that resolution is achieved.

Click here to view the report.