Matthew Goldstein Discusses the Fund ABS Market for Smaller Sponsors in Private Funds CFO

North American Investment Funds Group Co-Head Matthew Goldstein spoke to Private Funds CFO about the challenges facing smaller private market sponsors in the fund asset-backed securities (ABS) market. In the article, “Fund ABS Market Bifurcates for Smaller GPs,” Matthew notes that sponsors looking to launch a collateralized fund obligations investment product need access to a diverse investor base, as well as specialized internal capabilities. A key question is whether “you have the internal capabilities to get a transaction of this type done insofar as raising capital, or do you have to engage a placement agent, investment banker or someone else to raise the capital?” Matthew notes. He adds that rated note feeder structures (RNFs), which are less complicated investment products that go through a rating process, present fewer hurdles for smaller sponsors with shorter track records.

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