Key Compliance Issues Facing Credit Managers During the Pandemic

The coronavirus pandemic has roiled the credit markets and placed unprecedented financial stresses on businesses, creating opportunities for fund managers to pursue credit strategies and direct lending. A recent ACA Compliance Group (ACA) seminar examined the state of the credit markets and the compliance challenges facing managers that participate in them, especially managers wading into unfamiliar waters. The program featured Andrew Poole and Kimberly Versace, senior principal consultants at ACA, and Sabrina Fox, executive advisor at the European Leveraged Finance Association. This article summarizes their insights. See our two-part series on direct lending funds: “Structural Approaches to Address Liquidity Considerations and Ensure Regulatory Compliance” (May 28, 2020); and “Five Structures to Mitigate Tax Burdens for Various Investor Types” (Jun. 4, 2020). See also our two-part series on an Alternative Credit Council study on private credit: “Continued Growth in Private Credit, Despite Headwinds” (Jan. 16, 2020); and “Outlook for Private Credit” (Jan. 23, 2020).

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