In short
- A club deal groups several families into one transaction on the same terms.
- Issued as notes, each participant holds a security with an ISIN at its own bank.
- Governance is set in the documentation: information rights, decisions and exit.
Family offices often see the same opportunity at the same time: a company to finance, a property to acquire, a pre-IPO allocation too large for one family. A club deal lets them participate together without each negotiating a separate agreement.
Why a note
- One set of documents and identical terms for all participants
- Each family holds the investment at its own bank, with an ISIN
- Segregation of the compartment’s assets from other transactions
- Payments to all participants through one paying agent
Governance points to settle before issue
- Information provided to noteholders and how often
- Decisions requiring noteholder consent, and the majorities
- Treatment of follow-on investments
- Exit scenarios and distribution of proceeds
Kerdo organises club deals for families and companies, structures them as notes issued by a Luxembourg securitisation compartment, and can co-invest its own capital where appropriate.
This article is general information for professional investors and does not constitute investment, legal or tax advice. The documentation of each series governs.