Glendower Capital Secondaries CFO, LLC Receives Ratings from KBRA for Rated Debt

Glendower Capital Secondaries CFO, LLC has recently received ratings from KBRA for its Rated Debt. The $57.9 million Class A Loans, $17.4 million Class B Loans, and $11.6 million Class C Loans issued by Glendower Capital Secondaries CFO, LLC have been assigned ratings by KBRA. These loans, along with $29.0 million of unrated Subordinated Loans, will be used by the Issuer to finance capital commitments to funds pursuing Glendower's private equity secondaries strategy.

KBRA's analysis takes into account key credit considerations, including asset coverage, transaction structure, delayed draw funding structure and equity funding risk, and manager review and track record. The ratings assigned to the Rated Debt are sensitive to factors such as significant underperformance of the Underlying Funds, deterioration of investor credit quality, and an increase to asset coverage.

The Underlying Funds consist of secondary investments in private equity funds, which KBRA views as a complex and illiquid asset class. The initial draws on the debt will be drawn at advance rates of 50%, 15%, and 10% for the Class A Loans, Class B Loans, and Class C Loans, respectively, resulting in various levels of asset coverage.

KBRA also considered the liquidity profile of the seasoned limited partnership interests in private equity funds and the duration of the investments within Glendower's managed funds. The cash flow analysis conducted by KBRA suggests that the Class A Loans can withstand asset underperformance, while the Class B Loans and Class C Loans can consistently withstand performance consistent with historical levels of private equity performance.

In terms of qualitative factors, Glendower Capital is a private equity firm focused on secondary private markets globally. The firm has a value investing bottom-up approach to secondaries and has demonstrated consistent deployment, underwriting, and performance capabilities over the years.

This rating from KBRA for Glendower Capital Secondaries CFO, LLC provides valuable insights into the creditworthiness and risk associated with the Rated Debt. Investors can use this information to make informed decisions regarding their investments.

For more details on the rating and relevant documents, please visit the provided link.

About KBRA: Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission. KBRA is recognized for its expertise in assessing creditworthiness and providing ratings for various types of debt instruments.