NAV & Preferred Equity

A stipulation that capital distributed to LPs via NAV facilities can be recalled is creating headaches for some investors.

A disconnect exists in the industry between GPs who view continuation funds as a desirable way to hold certain assets beyond the limits of a traditional private equity fund, and LPs who generally would prefer a regular exit.

The mega-sponsor is planning originations in the coming months, primarily in the buyouts space.

Non-bank lenders are becoming more prominent as banks retrench.

Opinions are divided on exactly what the recent rate spike means for NAV financing.

With banks constrained by market uncertainty, sub lines are taking longer to negotiate.

NAV solutions are being offered to LPs facing liquidity issues.

Projected volumes vary wildly, but there’s little doubt that the market is growing.

LPs are generally receptive provided the loans aren’t just an attempt to add leverage.

Climbing interest rates and a reduction in credit elsewhere are spurring demand for NAV loans.