Collateralized Fund Obligation Transactions

Summary

This practice note provides an overview of collateralized fund obligations (CFOs) for attorneys and market professionals. CFOs have attracted increased interest in the past few years as a method for financing equity interests in private funds. This practice note describes the basic elements of a CFO, execution of a CFO transaction, regulatory issues related to CFO transactions, how a CFO differs from other similar transactions, and what is driving the recent growth in the CFO market.