Anne Anquillare was featured in the July 16, 2018 CFA Institute blog entitled Private Equity Funds: Leverage and Performance Evaluation by Antonella Puca, CFA, CIPM, CPA

As Anne Anquillare, CFA, president and CEO of PEF Services, notes:
“It is important to distinguish a subscription line of credit that is used to finance investments over a longer period of time versus the typical ‘bridge loan,’ which have strict limits in the use of advances (partnership expenses and for short-term deal financing). Typical terms that distinguish short-term loans is that the principal is generally payable within 120 days, it cannot be repaid with new advances and loans cannot be used for distributions. These lines have an operational nature and do not generally affect the risk profile of the fund in a significant way. They are very different from a longer-term subscription line of credit, which may indeed have a significant impact on a fund’s IRR and risk characteristics.”

To read the article, click the link below:
Private Equity Funds: Leverage and Performance Evaluation