How do sidecar funds work?
A sidecar fund is a pooled investment vehicle that makes investments by “riding alongside” another investor. A pooled investment vehicle means an investor puts their money into a common pool with other people.
What is a sidecar structure?
A reinsurance sidecar, sometimes referred to as a reinsurance sidecar vehicle or simply a sidecar, is a financial structure established to allow investors (often external or third-party) to take on the risk and benefit from the return of specific books of insurance or reinsurance business.
What is a sidecar facility?
Incremental equivalent debt (or “sidecar” facilities) uses the incremental debt capacity but is incurred as a separate facility outside the loan agreement, subject to customary conditions including an acceptable intercreditor agreement.