Pine S Captalsf

CASE STUDY
Pine way I LLC: a part study in securitisation
Filip Henzler, Principal, big(p) kinetics*

Summary
Pine passage is a $1.0 billion securitisation collateralised by a diversified portfolio of hold in partnership interests in 64 various hush-hush justness funds. Nine subsidiaries of American International Group, Inc. (AIG) sold parts of their private equity fund portfolios in exchange for cash and a majority of the subordinated securities issued by Pine Street. The operation closed on December 31, 2002. AIG Global Investment Group, Inc. (AIGGIG), a subsidiary of AIG, and ceiling Dynamics acted as advisors to the sellers and as structuring come onnts.

that distributions are only make to subordinated note holders if both oer-collateralisation stresss and a specially constructed liquidity test have been met. The portfolio consisted of limited partnership interests in 64 different private equity funds with a total film of $1.0 billion ($646 one million million of fair market value and $354 million of unfunded commitments). The portfolio is well diversified with its value split 61 per cent in buyout funds, 15 per cent in danger capital funds, 12 per cent in real terra firma funds and 8per cent in generalist vehicles. The commitments were spread everyplace 11 different vintage years and had an average age of 5.



5 years when weighted by asset value. The portfolio contained 910 underlying portfolio companies of which over $90 million were investments held in listed companies.
Chart 1: Capital Structure
Class $90 Liquidity Facility

Chart 2: exploit Overview
Third Party Investors Note A Holders Class A Notes Cash Issuer Pine Street I LLC Servicer Capital Dynamics Participation agreement Intermediate Seller Pine Street I LLC Owns portfolio Private Equity Fund Investments Sells portfolio Seller/ Noteholder AIG Notes and Cash

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The transaction is structured as a two-tier securitisation, with one special plan vehicle acting as the intermediate purchaser of...If you extremity to get a full essay, order it on our website: Orderessay



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