London, 3 December 2025 – The European Leveraged Finance Association (“ELFA”), with partner, international law firm Akin, today release the fourth issue of its Transferability Series , focusing on the rapid rise of portability provisions in leveraged finance documentation and the resulting implications for lender rights, transparency, and market standards that can lead to the detriment of lenders and wider market discipline.
ELFA and Akin warn that the growing prevalence of portability provisions risks eroding long-established lender protections, especially around change-of-control mechanisms. With portability clauses frequently relying on broad AUM thresholds, permissive sponsor whitelists, and limited clarity around triggers or interactions with other provisions, lenders may be left unable to accurately assess risk, price loans, or exit positions when ownership changes.
Ed Eyerman, CEO at ELFA commented: “Our goal is to promote clearer, more consistent, and more transparent standards that give lenders meaningful visibility into sponsor intentions and prevent the gradual weakening of fundamental protections. In this instalment we have highlighted the concerns around portability provisions, and we hope that by addressing these issues now, we can support a healthier leveraged finance ecosystem where all stakeholders can operate with confidence.”
Key concerns highlighted in the report include:
To counter these trends and support a more transparent and liquid market, the report sets out a series of proposed reforms aimed at restoring balance and predictability. This includes: tightening sponsor eligibility criteria, such as requiring named sponsors, stricter AUM thresholds, demonstrated track records, and compliance with leverage and equity contribution requirements; reintroducing evaluative triggers to ensure lenders can assess a new sponsor’s creditworthiness, business plan, and alignment before portability can be exercised and limiting portability to defined time windows, to prevent indefinite exposure and requiring disclosure of exit intentions, ensuring transparency around whether portability is being included for imminent sale processes.
Further reports as part of the transferability series can be accessed here.
The European Leveraged Finance Association (ELFA) is delighted to announce that Fitch Solutions is becoming an Insights partner with immediate effect, to offer insights and services across the leveraged finance landscape in support of ELFA members’ knowledge and risk management.
The European Leveraged Finance Association (ELFA), is delighted to announce the formation of a new Restructuring Committee, alongside the appointment of three founding Co-Chairs with extensive experience in bond, loan and private credit restructurings. The founding Co-Chairs are Dermot MacNamara from Muzinich & Co., Marc Touboul from Bain Capital, and Mohit Agarwal from Pemberton Asset Management.
The European Leveraged Finance Association (ELFA) has today published the third instalment in its Transferability Series, focusing on the lack of clarity and consistency in senior facilities agreements (SFAs).
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