Winston & Strawn Sponsors, Attorneys Speak at DealCatalyst’s Specialty Lender Finance Conference 2023

Winston & Strawn was a proud sponsor of the DealCatalyst’s Specialty Lender Finance Conference in New York on September 18, 2023. This one-day event explored the key funding factors specialty lenders should consider from launch phase to maturity, and eventual exit via M&A or a public ABS deal. Investors had a unique forum to meet emerging and established specialty lenders and participate in a sector with an attractive yield and risk profile.

Partner Sean Kelly spoke at the event. Winston attorneys Christopher Capitanelli and Pete Morgan were also in attendance.

Key Takeaways

Emerging Asset Classes: Harder to Finance, But Easy to Love

• There are many different esoteric assets that different funds are looking at including Solar, electrification, data analytics, and music royalties.
• In addition to headline risk, funds also focus on or may be less interested in certain assets due to their investors.
• Though there is a focus on sustainability assets by funds, the interest and demand is not absolute.
• For many esoteric assets, it is important that funds identify and engage technical experts to fully understand the asset, including risk and returns.

Pockets of Stress in Today’s Market

• When a facility or borrower platform begins to experience distress, both parties (but particularly the lenders) should take the time to review in detail the terms of the transaction. Go back to your transaction documents, understand the covenants and default triggers, and identify the actual range of flexibility that can be brought to the negotiating table.  
• Our impression of the Fintech market, following the recent industry slowdown, is that lenders and investors are shifting their investing strategy from a growth-driven approach towards a profit-driven focus. “Results” have become the decision driver for lending and investing in the Fintech sector.