NAV financing for family offices and individuals: explained

Last reviewed October 2026.

A family office, or an individual who holds a portfolio of private investments through a holding company, can borrow against that portfolio without selling any of it. The loan is made to the holding company, secured on its shares and its distribution accounts, and sized at up to 30% of the independently verified value of the fund interests or company stakes it owns. Nodem Capital is an FCA-authorised AIFM (fund manager) providing these facilities from $10m to $100m and above. This page sets out who it suits, how it is structured, what it costs, how long it takes and what to prepare.

Who it suits

Three kinds of borrower come to us most often. The single family office with a book of fund commitments across managers and vintages, facing overlapping capital calls, an acquisition or a tax liability. The individual, often a senior finance professional or a founder, who has built a personal portfolio of fund interests and co-investments and now faces a settlement, a tax bill or a large call. And the family holding company with a dozen or more direct stakes in private companies, wanting to fund follow-ons or a new platform, or to bridge to an exit two years out.

The common thread is a diversified private book, usually $30m of value or more, held in or capable of being moved into one entity, and a specific use of proceeds with a visible source of repayment.

What it does not suit

A single operating company, however valuable. Listed shares, where a Lombard line from a bank is cheaper. Land, crypto or a book of early-stage stakes with no exit path. A borrower who wants to draw and repay frequently; this is a term loan, not a revolver. And a need below $10m, where the fixed costs of documentation and valuation outweigh the benefit.

How it is structured

The borrower is the holding company or special purpose vehicle that owns the assets. We take a pledge over its shares and a charge over the accounts that receive distributions, dividends and sale proceeds. The fund interests and company shares are not transferred or pledged, so in most cases the funds’ transfer provisions are not triggered and no general partner consent is needed; we check each agreement for notification language. The family remains the investor of record, keeps its board seats and voting rights, and runs the portfolio as before. We have no involvement in investment decisions.

If the holdings sit in personal names or across several entities, the first step is to consolidate them into one holding company. That takes a few weeks and some tax advice, so it should start before the term sheet.

Terms

Indicative terms as at October 2026. Every facility is custom and pricing is confirmed only in a signed term sheet.

Facility size from $10m to $100m and above; most between $10m and $50m.
Loan-to-value usually up to 30% of independently verified value; higher for very diversified books of institutional fund interests, lower for concentrated or direct holdings.
Term one to five years, extendable.
Interest cash pay or PIK, in USD, EUR or GBP.
Pricing for most facilities of 450 to 750 basis points over SOFR, SONIA or Euribor; PIK adds up to 100 basis points.
Arrangement fee agreed in the term sheet; no early repayment penalty.

A worked example

A family office holds $120m across 25 buyout, growth and credit funds from a dozen managers, vintages spread over eight years, in one holding company, with $18m of unfunded commitments. It wants $30m: $18m to cover the next two years of calls without selling, and $12m towards a direct acquisition.

A $30m facility is 25% loan-to-value, inside the normal range for a book of that diversification. The loan is made to the holding company over three years. Distributions continue to arrive, with an agreed portion applied to interest and the rest released. If the portfolio distributes faster than expected, the office repays early at no cost. If values fall, a 25% starting point leaves a wide cushion before the covenant is tested.

The alternative is to sell $30m of interests. On 2025 secondary pricing for buyout funds of roughly 90% of NAV, that gives up around $3m on the day and all future return on the positions sold. The loan costs interest for as long as it is drawn, and nothing else.

How long it takes

An indication of appetite within three business days of receiving the portfolio schedule, recent statements and use of proceeds. A term sheet within a week. Legal documentation and independent valuation run in parallel, and funding typically follows four to six weeks after the term sheet. Prepared borrowers with clean fund documents have funded inside a month. The things that add time are missing side letters, transfer restrictions that require a holding company restructure, and valuation of concentrated positions; all three can be dealt with before day one.

What to prepare

A schedule of every holding: commitment, paid-in, current value and unfunded amount.
The latest capital account statements or, for direct stakes, the latest valuation and round documents.
A structure chart showing which entity holds what.
The fund agreements and side letters, or the shareholder agreements for direct stakes.
The holding company’s constitutional documents and latest accounts.
One paragraph on what the money is for, when it is needed and how it will be repaid.

Frequently asked questions

Can an individual get a NAV loan, or only a fund?

An individual can, provided the portfolio is held through a holding company and is diversified. We lend to the company, not the person, and underwrite the portfolio in the same way as a family office book.

Does my fund manager need to approve the loan?

Usually not. The security is over the holding company, not the fund interest, so the fund’s transfer provisions are not normally triggered. We check each agreement for notification requirements.

Can I borrow against private company stakes rather than fund interests?

Yes, where there are a dozen or more positions in one holding company and no single company dominates. Advance rates are lower than for fund interests because each position is valued on its own.

What does a NAV loan cost a family office?

Most facilities price at 450 to 750 basis points over the reference rate, plus up to 100 basis points where interest is capitalised, plus an arrangement fee. Every facility is custom and pricing is confirmed only in a signed term sheet.

How quickly can a family office get a NAV loan?

An indication within three business days, a term sheet within a week and funding four to six weeks after that; prepared borrowers have funded inside a month.

Talk to the decision maker

If you are a GP working against a capital call, a deal deadline or a cash flow pinch, email me directly at abranton@nodem.com with the outline and the date you need to fund. I will tell you quickly and honestly whether we can hit it.