Banking Law Journal: Participations in the Fund Finance Market

Mayer Brown partner Kiel Bowen and associate Andi Wilt authored this article discussing how participations are increasingly being utilized in the finance industry, serving as a mechanism for lenders to manage credit exposure, diversify loan portfolios, optimize capital utilization, and distribute risk among multiple parties. Authors clarify the distinctions between participations and assignments, outline the general scope and structuring options for participation agreements, and detail considerations for lenders evaluating these arrangements, including potential balance sheet benefits.