Impact Fund Workouts: Clean Energy, Affordable Housing, and Mission-Aligned Restructurings

This course will examine legal frameworks and market dynamics shaping workouts and restructurings of impact funds, including those investing in clean energy and affordable housing. The course will examine credit facility stress (including in NAV loans), tax equity partnership disputes, CDFI and DFI lending defaults, GP-led secondary transactions, covenant amendments, and strategies for preserving impact mandates and regulatory compliance while addressing liquidity constraints and portfolio underperformance.

Impact funds, including those investing in clean energy infrastructure and affordable housing, often operate within complex and layered capital stacks—this often involves LIHTC partnerships, ITC bridge loans, CDFI credit facilities, EPA Greenhouse Gas Reduction Fund allocations, and development finance institution commitments—each carrying distinct regulatory covenants, mission-linked obligations, and compliance requirements that may survive traditional restructuring mechanisms. When these funds encounter stress, the workout playbook must account for more than the typical creditor rights and LP protections. Practitioners must navigate intercreditor dynamics across senior lenders, tax equity investors, and subordinate mission-driven capital, while preserving regulatory agreements that run with the property or investment, regardless of ownership changes.

This program will provide practical, deal-level guidance on restructurings in these complex structures, including negotiating covenant resets with credit facility lenders (including in NAV loans), managing tax credit recapture risk in workout scenarios, structuring continuation vehicles that satisfy both financial and impact stakeholders, and advising fiduciaries on the tension between liquidity solutions and mission preservation. The panel will address how frozen federal funding is creating new stress across the clean energy lending pipeline, and how practitioners can counsel clients through these disruptions while protecting deal economics and regulatory standing.

Listen as our panel of experienced practitioners walks you through emerging trends, structural pitfalls, and effective strategies for counseling clients through fund workouts and restructurings in today's market.