A $240m (£188.21m) capital call facility by HSBC has been structured as a securitisation by ICG in the first transaction of its kind.
The deal has all the attributes of a more standard capital call line structure, said Latham & Watkins, who advised ICG on the transaction.
The law firm added that the capital call securitisation marks a trend for increasing demand for sophisticated fund finance solutions.
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It was done using a newly-developed methodology and structure to securitise the fund’s exposures to investor capital calls, while supporting the fund’s objectives.
“At ICG we’re constantly looking to innovate in the fund finance arena as the market evolves,” said Steve Burton, treasurer of ICG.
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“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, added that the global banking giant is excited to further develop its longstanding relationship with the ICG team, and to innovate in the product offering by using structured financing techniques.
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