NAV loans are delivered through our Credit platform and are designed to support private equity managers during the critical value-creation stage of the fund lifecycle.
NAV loans are fund-level financing solutions that enable managers to enhance investor returns without selling assets. They’re typically deployed during the value creation phase of a buyout fund, usually between years 4 and 9, once a diversified portfolio of companies has been built using investor commitments and subscription lines.
Key use cases
Increasing investment capacity
Refinancing existing debt
Generating liquidity for investors
Key features of a NAV loan
Diversified portfolios managed by high quality mangers
Conservative LTV
Floating rate and margin
Cash sweep over portfolio distributions
Long-date maturity
An example of a NAV loan structure
Case studies
Supporting portfolio growth at the fund level
NAV-based facility to a European private equity buyout fund to support new platform and follow-on acquisitions.
Global multi-strategy asset manager
$70bn+
AUM
Deal size
€180m
Supporting follow-on acquisitions at the fund level
NAV-based facility to a North American private equity buyout fund to support new platform investments and follow-on acquisitions.
North American buyout manager
$16bn+
AUM
Deal size
$700m
NAV finance is best known for supporting buyout funds; but one of its most strategic applications lies at the GP level: financing private equity management companies. At 17Capital, these solutions are delivered through our Strategic Lending platform.
GP financing supports a broad range of strategic objectives for private equity management companies. It allows the GP – consisting of either a group of Partners or the management company’s balance sheet – to borrow against a pool of their assets.
Key use cases
Financing outsized GP commitments
Franchise growth and consolidation
Sucession planning
Key features of a transaction
Diversified portfolios managed by high-quality sponsors
Efficient LTV structuring
Fixed PIK or Fixed PIK with equity upside
Cash sweep over portfolio distributions
No contractual maturity
An example of a Strategic Lending transaction
Case studies
GP financing
Bespoke preferred equity facility to augment the manager’s GP commitment to its latest private equity fund and repay existing debt.
European buyout manager
$50bn+
AUM
Deal size
€175m
GP financing
GP facility to a global alternatives manager to augment commitments to its new private equity fund.