Also known as related fund or fund. A term used to describe a certain type of eligible assignee under a loan agreement. Typically defined as an entity that is engaged in making, purchasing, holding or investing in bank or commercial loans and similar extensions of credit in the ordinary course of its business and that is administered, advised or managed by:
A lender under the loan agreement.
An affiliate ( www.practicallaw.com/resource.do?item=:44401199) of a lender under the loan agreement.
An entity or an affiliate of an entity that administers, advises or manages a lender under the loan agreement.
Approved funds are typically affiliates of term b lenders ( www.practicallaw.com/resource.do?item=:44401995) and other institutional investors (rather than commercial banks) and loans are often allocated among several related approved funds of a lender.