With exit opportunities increasingly constrained in today’s volatile market, GPs are turning to NAV loans as a flexible solution to unlock liquidity and enhance fund performance. NAV loans are gaining traction across the industry, providing GPs with creative ways to drive returns amid challenging conditions.
In this piece, we explore the potential of NAV loans as a value-add for GPs, LPs, and portfolio companies alike, while also examining the risk and transparency questions that arise with some of their most popular applications.