KBRA Assigns a Rating to the Class A Notes Issued by White Rose CFO 2023 Holdings, LLC
28 Dec 2023 | New York
KBRA assigns a rating to the Class A Notes issued by White Rose CFO 2023 Holdings, LLC. The Notes are indirectly backed by limited partnership (LP) interests in five different White Rose Funds of Funds (the "White Rose Funds"), which in turn hold a diversified pool of interests in private funds. In aggregate, the White Rose Funds hold LP interests in 70 unique seasoned funds managed by 58 unique general partners (GP). The allocable portion of the White Rose Funds that support the repayment of the Notes has a Net Asset Value of approximately $800 million and unfunded capital commitments of approximately $127 million as of October 31, 2023. The total issuance amount is $400 million, resulting in an initial Loan-to-Value of approximately 50%.
Proceeds from the Transaction will be used to support the acquisition of the limited liability company interests of White Rose CFO 2023, LLC ("Asset HoldCo") which will hold, as of the closing of the transaction, the LP interests in the White Rose Funds, fund the Liquidity Reserve Account, fund the Issuer Account, and finance various transaction fees and costs. To the extent the value of the acquisition of the Asset HoldCo exceeds such proceeds, such excess will be treated as a capital contribution from Thrivent Financial for Lutherans (“Thrivent”, the “Manager” or the “Firm”). All remaining proceeds will be deposited into the Issuer Account. Thrivent is a fraternal benefit society established in 1902 that primarily serves as a financial services and insurance provider.
KBRA applied its Investment Fund Debt Global Rating Methodology and ESG Global Rating Methodology as part of its analysis of the transaction’s underlying collateral pool and the proposed capital structure. KBRA’s ratings also consider the ability of Thrivent to fulfill its servicing and financial obligations for this transaction.
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