ARTICLE
14 June 2021

Subscription Line Finance – Irish Funds

W
Walkers

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We are a leading international law and professional services firm providing legal, corporate and fiduciary services to global corporations, financial institutions, capital market participants and investment fund managers. With a global presence spanning the Americas, Europe, the Middle East and Asia, we advise on the laws of Bermuda, the British Virgin Islands, the Cayman Islands, Guernsey, Ireland and Jersey. With over sixty years of looking at the world through the same commercial lens as our clients means we deliver focused, clear, precise advice to get the deal done. Clients trust us to help them make good business decisions, create commercially sound products and strategies, resolve disputes and cement deals that are profitable. From offices across geographies, we deliver business-critical advice and service in the same time zones as our clients, covering asset management, investment funds, corporate, M&A, dispute resolution, finance, insurance, fintech, private capital and trusts, regulatory and more
Given the popularity of Ireland's funds industry, it comes as little surprise that Irish funds frequently feature in the fund finance landscape and increasingly so in the context of subscription line financings.
Ireland Finance and Banking
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Ireland as a Leading Funds Jurisdiction

Ireland has long been a leading domicile for internationally distributed investment funds, covering the widest range of fund types. International fund promoters are attracted to Ireland due to its open, transparent and well-regulated yet flexible investment environment, a strong emphasis on investor protection, an efficient tax structure and its innovative business culture.

Commonly utilised Irish Funds

The fund finance market continues to expand with latest estimates placing the market in excess of $500 - $600 billion. Subscription line financing (also known as capital call financing) can be broadly summarised as lending against capital commitments owing to a borrower. Given the popularity of Ireland's funds industry, it comes as little surprise that Irish funds frequently feature in the fund finance landscape, increasingly in the context of subscription line financings.

The following table contains a brief overview and comparison of the most common regulated and unregulated Irish fund types and special purpose vehicles (for the purposes of this article, referred to as 'funds') which we see in the subscription line financing space. We have also included an overview of the newly re-invigorated Investment Limited Partnership, given its anticipated popularity for PE managers over the coming years.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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