How Demand for ESG Facilities is Driving Complex Deals

Attorney Zac Barnett is an established business lawyer who leads Fund Finance Partners, LLC (FFP) in Chicago and focuses on arranging subscription finance. With deep market knowledge, Attorney Zac Barnett works with investment facilities such as environmental, social, and corporate governance (ESG) linked subscription lines.

Anastasia Kaup, a member of the FFP team, was interviewed in the September 2022 Private Funds CFO article on ESG facilities, describing borrowers as driving demand. This has created a business for her firm in providing sponsors with ESG fund access and financing assistance. Incorporating ESG metrics in ways that meet debt financing requirements can be complex and involves developing infrastructure behind products tied to sustainability metrics such as carbon output.

Kaup also explains that lender partners need to be able to set up compliance, tracking, and reporting, at the same time that they fine-tune facilities to specific ESG objectives. With such subscription line facilities “institutionalizing the importance of ESG,” borrowers may be able to achieve substantial profits, should goals be met.