Testing times: The questions everyone is asking about NAV

There’s no escaping the buzz around NAV loans in the fund finance industry. The market for NAV finance is evolving as other sources of capital become more expensive. A recent survey by fundraising adviser Rede Partners suggested that NAV loans have resisted much of the turmoil seen in the leveraged loan market in 2022, with the lenders surveyed by Rede seeing an increase in the number of transactions.

The increased use has been spurred by new loan structures, specifically new hybrid vehicles, with a portion resembling a revolving subscription line structured into the deal when used with continuation vehicles.

Private Funds CFO has spoken to leading market players, and it’s clear that the use of NAV facilities is likely to increase, which, in turn, raises a host of new questions.

Here, we take a look at how this relatively new form of finance is set to fare amid the current market turmoil. Just what are the issues likely to dictate whether NAV loans live up to their billing as an attractive source of finance in these tough times?

The answers to these six questions can be found by clicking in the linkbox below.