Insurance companies are stepping in to fill a supply gap in fund finance, and one of the insurance worlds’ first movers in the market is looking to expand its fingerprint.
NAV finance has come a long way in just the last few years. 17 Capital executives Robert de Corainville and Greg Hardiman explain the dynamics of the market in 2022 and how they suggest explosive growth in the years to come.
Two former 17Capital managing directors are said to be in the running to launch a potential NAV lending business at investment firm Hunter Point Capital.
Only two years ago, the accepted ceiling for the subscription line market globally was $500bn, a figure now seen as wildly underestimated. Meanwhile, NAV financing is poised for meteoric growth
NAV structures are now able to suit both borrowers’ goals and investors’ yield targets, but some are worried certain structures go too far, including a structure that essentially gives borrowers equity at the cost of debt.
Banks hitting concentration limits and syndicating deals, insurance companies coming in as both buyers and lenders, and even rising interest rates all point to a bigger slice of market for non-banks.