This chapter of Global Legal Insights Fund Finance 2019 considers a number of key structural and documentary legal issues that should be considered by any manager thinking about entering into derivatives transactions at fund level.
The observations made in this chapter are drawn from experience in the European fund finance and derivatives markets and are not tailored to any particular derivatives strategy. This chapter does not provide detailed legal and regulatory analysis in relation to particular issues by reference to the laws of any particular jurisdiction. Any manager who intends to enter into derivatives at fund level should obtain legal and regulatory advice under the laws applicable to the proposed parties to the transaction and to the transaction itself, which should be tailored to the particular characteristics of the parties, the fund’s constitutional documents and the circumstances of the transaction.