How do GPs use NAV facilities?

General partners use NAV facilities to bridge capital calls, fund GP commitment and co-investment obligations, finance continuation vehicles, accelerate DPI by returning capital to LPs ahead of portfolio exits, and support follow-on investments in existing portfolio companies. The facility is secured against the fund's net asset value rather than individual assets, so the portfolio stays intact.

What size NAV facility can a mid-market fund raise?

Mid-market funds typically raise NAV facilities of $10 million to over $100 million at loan to value ratios of up to 30% of independently verified net asset value. Nodem Capital specializes in this segment, lending against portfolios that are below the minimum thresholds of the largest NAV lending platforms but too complex or illiquid for bank credit.

How quickly can a NAV facility close for a fund?

Specialist lenders move significantly faster than banks. Nodem Capital typically delivers a term sheet in days and funds in approximately one month, versus three to four months through a bank credit committee. For time-sensitive uses like capital call bridges or co-investment deadlines, this speed is often the deciding factor.

What should a GP prepare before approaching a NAV lender?

A GP should prepare portfolio composition details, current NAV reports from the fund administrator or an independent valuation agent, the limited partnership agreement (lender counsel will review borrowing provisions), intended facility size and use of proceeds, and a plan for LPAC communication. Under the ILPA guidelines published in July 2024, GPs are expected to seek LPAC consent with full disclosure where fund documents are silent on NAV financing.

NAV Loans for GPs and Funds

NAV Loans

Nodem Capital is an FCA-authorised AIFM (fund manager) providing facilities of $10m to $100m+ to GPs, funds and LPs, with cash pay or PIK interest and terms of one to five years.

FCA Regulated

Asset manager authorised by the UK FCA

Institutionally Backed

Backed by Lepercq Group

Transaction Scale

$10m to $100m+

Fast & Reliable

Facilities against multiple asset classes

What is a NAV facility?

A NAV facility is generally a term loan in which a lender provides financing (debt or preferred equity) against a portfolio’s net asset value.

NAV tools are best known for private fund financing solutions that enable managers to enhance investor returns without selling assets.

Nodem also provides standalone GP financing of $10m to $100m+ secured against management fees, LP stakes and carried interest. No banking relationship required, no subscription line strings, funding in about a month. Learn more here.

Our NAV lending glossary explains NAV loans, fund finance and GP financing, and the legal terms used in term sheets.

Read our extensive library of insights and case studies here.

A NAV facility is generally a term loan in which a lender provides financing (debt or preferred equity) against a portfolio’s net asset value.

NAV tools are best known for private fund financing solutions that enable managers to enhance investor returns without selling assets.

Read our extensive library of insights and case studies here.

How are GPs using NAV facilities?

Fund financing

Increasing investment capacity (worked example)
Refinancing existing debt
Generating liquidity for all (or specific) LPs
Filling a gap in a Continuation Vehicle fundraise

GP financing

Financing outsized GP commitments
Franchise growth and consolidation
Succession planning

Special situations

Fund financing

Increasing investment capacity (worked example)
Refinancing existing debt
Generating liquidity for all (or specific) LPs
Filling a gap in a Continuation Vehicle fundraise

GP financing

Financing outsized GP commitments
Franchise growth and consolidation
Succession planning

Special situations

Questions GPs ask us

How are GPs using NAV facilities?

Can a fund of funds take a NAV facility to finance new commitments?

Yes. A fund of funds or feeder vehicle with a diversified book of underlying fund interests can borrow at 20% to 30% of NAV to fund re-ups and new commitments, reducing cash drag without calling further investor capital. Evergreen vehicles can use the same structure to manage redemptions and calls.

Can a GP borrow against carried interest or management fees to fund its commitment to the next fund?

Yes. GP commitment financing can be secured on accrued carry in earlier funds, the management company’s fee stream, the GP’s own fund interests, or a combination. Terms follow the same principles as our NAV loans: facilities from $10m, typically up to 30% of verified value, over one to five years, cash pay or PIK.

How can a GP finance buying out its seeder or an anchor investor?

A loan secured on the management company’s fee income and the partners’ fund and carry interests can fund a seeder or anchor buyout, or a partner succession, without selling a GP stake. We underwrite the manager’s contracted fee base and the realisation profile of the carry.

What size fund is too small for a NAV loan?

Our facilities start at $10m, which usually means a fund or portfolio of at least $30m to $50m of NAV. Below that, a NAV loan is rarely efficient and we will say so early.