The Rise of NAV Financing in Private Equity

Daily Journal

David A. Niemeyer Alex Lyass Blake H. Bainou

Net asset value-based lending offers private equity funds significant strategic flexibility. Partner David Niemeyer and associates Alex Lyass and Blake Bainou discuss important considerations to help private equity funds contemplating an NAV facility mitigate associated risks and maximize benefits:

  • Can the fund secure an NAV facility?
  • What size NAV facility can the fund secure?
  • What restrictions do NAV facilities typically impose?
  • What risks can be associated with NAV facilities?