To install click the Add extension button. That's it.

The source code for the WIKI 2 extension is being checked by specialists of the Mozilla Foundation, Google, and Apple. You could also do it yourself at any point in time.

4,5
Kelly Slayton
Congratulations on this excellent venture… what a great idea!
Alexander Grigorievskiy
I use WIKI 2 every day and almost forgot how the original Wikipedia looks like.
Live Statistics
English Articles
Improved in 24 Hours
Added in 24 Hours
What we do. Every page goes through several hundred of perfecting techniques; in live mode. Quite the same Wikipedia. Just better.
.
Leo
Newton
Brights
Milds

Collateralized fund obligation

From Wikipedia, the free encyclopedia

A collateralized fund obligation (CFO) is a form of securitization involving private equity fund or hedge fund assets, similar to collateralized debt obligations. CFOs are a structured form of financing for diversified private equity portfolios, layering several tranches of debt ahead of the equity holders.

The data made available to the rating agencies for analyzing the underlying private equity assets of CFOs are typically less comprehensive than the data for analyzing the underlying assets of other types of structured finance securitizations, including corporate bonds and mortgage-backed securities. Leverage levels vary from one transaction to another, although leverage of 50% to 75% of a portfolio's net assets has historically been common.

The various CFO structures executed in recent years have had a variety of different objectives resulting in a variety of different structures. These differences tend to relate to the amount of equity sold through the structure as well as to the leverage levels.

YouTube Encyclopedic

  • 1/3
    Views:
    58 914
    112 472
    393 976
  • ABCs of CDO (CLO, CBO, CDO of ABS)
  • Collateralized debt obligation overview | Finance & Capital Markets | Khan Academy
  • Collateralized debt obligation (CDO) | Finance & Capital Markets | Khan Academy

Transcription

Contents

Basic structure of a CFO

Generally, money is allocated into several different tranches by investors based on priority. A tranche is described as a security that can be divided into small portions and then sold in those portions to an investor. From the tranches the funds are then invested into a special purpose vehicle (SPV). SPVs are developed solely for the purpose of a CFO.[1]

Private equity CFOs

Since the advent of CFOs (ca. 2002), there have been only a handful of publicly announced private equity securitization transactions. Typically, owners of private equity assets will securitize a portfolio of funds as a way of generating liquidity without an outright secondary sale of the funds.

  • In 2006 Temasek Holdings completed $810 million securitization of a portfolio of 46 private equity funds.[2]
  • SVG Capital has executed three CFO securitizations as part of its "Diamond" program, SVG Diamond (2004), SVG Diamond II (2006) and SVG Diamond III (2007).[3][4]
  • Alongside its CLO program, Mizuho IM has launched its first CFO called Vintage I in 2007, a EUR 500 million fund investing in global buyout funds. The investment has proved extremely successful so far. Now under the ownership of 3i Group, the Vintage team closed a second USD 400 million Vintage II.[5]
  • Tenzing (2004) — Securitization of private equity fund assets by Invesco
  • Pine Street (2003) — Securitization of private equity fund assets by AIG
  • Silver Leaf (2003) — Securitization of private equity fund assets by Deutsche Bank

See also

References

  1. ^ Niles, Philip (February 2010). "Collateralized Fund Obligations: A Future Alternative to Fund of Funds?". Canadian Hedgewatch. 10 (2): 4–5.
  2. ^ Singapore’s Temasek Hits Hard Going (Asia Sentinel, 2007)
  3. ^ SVG Diamond Programme
  4. ^ SVG Diamond II raises €500m for private equity investment
  5. ^ "Archived copy". Archived from the original on 2010-04-10. Retrieved 2011-02-11.


This page was last edited on 16 October 2018, at 17:23
Basis of this page is in Wikipedia. Text is available under the CC BY-SA 3.0 Unported License. Non-text media are available under their specified licenses. Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc. WIKI 2 is an independent company and has no affiliation with Wikimedia Foundation.