LPC - Lending Lowdown Series Episode 38 | The Role of NAV Loans and How They Fit in GPs Financial Tool Kit
Mar 2, 2026
Ryan Moreno, Partner and fund finance lawyer at DLA Piper, and Aryeh Landsberg, MD of investments at 17Capital, explain NAV loans and fund finance structures. They discuss NAV mechanics, SPV and collateral setups. They explore practical uses like liquidity for late‑vintage funds, reserve financing and accretive M&A. They compare banks versus private credit and consider adoption trends and future LTV shifts.
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NAV Loans Use Fund Portfolio As Collateral
- NAV loans are fund-level loans using the private companies in a single fund as collateral, distinct from subscription lines that rely on LP commitments.
- Structures vary: single-fund NAVs, secondary NAVs, and increasingly SPV borrowers to isolate assets and manage transfer restrictions.
Mid‑2025 NAV Funded New Platform And Add‑Ons
- Aryeh described a mid-2025 deal where a NAV facility funded a new platform acquisition plus later add-ons via a delay draw.
- The facility let the manager bridge low uncalled capital and fund accretive M&A at fund tail end.
NAVs Solve Late Vintage Deployment Tension
- NAVs help managers near full deployment (typically >80% called) to access liquidity without heavy additional LP calls.
- They support fund expenses, reserves and accretive deals while managing LP concerns about longer deployment cycles.