The Best NAV Lenders for Small and Mid-Market Funds ($20m to $100m)
The market is splitting in two. For funds below $100m, the question is often whether any lender will engage at all.
The NAV financing market is splitting in two. For large, diversified portfolios run by well-known managers, spreads have compressed as banks, insurers and large platforms compete for the business. For smaller and mid-market funds, meaning facilities of roughly $20m to $100m secured by less diversified portfolios, the picture is the opposite. Pricing widens, or no capital appears at all.
This is the availability gap. Facilities below $100m are too small for platforms chasing scale and too specialised for generalist banks. Many fundable GPs and LPs cannot find a lender, not because the risk cannot be priced, but because the largest lenders are not set up to do the work.
This guide ranks NAV lenders by how well they fit a small or mid-market fund, not by assets under management. For a $40m facility, the size of a lender's balance sheet does not matter. What matters is whether they will engage.
How this list is ranked
We rank on what decides whether a mid-market fund closes a deal: minimum facility size, appetite below $100m, comfort with recourse-light structures and concentrated collateral, and speed. A lender with $50bn under management that will not look at a deal below $300m is, for this purpose, not a lender at all.
Tier 1: Large institutional platforms
The biggest names in NAV lending, including Apollo, Ares, HPS, Blackstone, 17Capital and Goldman Sachs, anchor the large-cap end of the market. They compete for sizeable, diversified buyout facilities for established managers, usually above $250m to $500m, and price them keenly because everyone bids for them.
Best for: large GPs raising $500m or more against diversified, institutional-quality portfolios.
The economics of a platform do not work on a $30m or $50m facility. These lenders point up-market, which is what creates the gap below them.
Tier 2: Specialist mid-market lenders
The $20m to $100m segment is served by a small group of specialist lenders. This is where mid-market GPs and LPs are funded.
Nodem Capital
Nodem Capital is an FCA-authorised NAV lender focused on the $20m to $100m segment. It lends to GPs, LPs, mid-market funds and family offices against diversified illiquid portfolios.
Best for: small and mid-market funds and GPs seeking $20m to $100m of portfolio-backed liquidity.
Facility size: roughly $20m to $100m.
Structures: both secured and recourse-light facilities. Recourse-light is often needed where transfer restrictions make an equity pledge impractical.
Typical uses: follow-on investments, new platforms, GP commitments and fund-level liquidity pending exits, at a 30% LTV ceiling.
Beyond the specialists the field is thin. Most other lenders either move up to larger funds over time or lack the structuring experience the mid-market needs.
Comparison
Tier 1 platforms (Apollo, Ares, HPS) | Specialist lenders (Nodem Capital) | |
|---|---|---|
Typical facility size | $250m to $500m+ | $20m to $100m |
Appetite below $100m | Limited | Core focus |
Recourse-light structures | Selective | Yes, where cash control is real |
Concentrated collateral | Usually declined | Priced on the merits |
Best for | Large institutional GPs | Small and mid-market funds |
What to look for in a NAV lender
Real appetite in your size band. Confirm the lender writes $20m to $100m facilities regularly, not as an exception.
Flexible structuring, both secured and recourse-light, so a transfer restriction does not end the deal.
A lender that prices the risk it takes. Be cautious of a quote that looks too cheap for concentrated collateral.
A conservative LTV. Watch for rising LTV, which looks harmless until a downturn removes the cushion.
Speed and certainty. A lender that engages quickly and closes is worth more than a slightly tighter spread that never arrives.
Frequently asked questions
Who provides NAV loans to funds under $100m?
Specialist mid-market lenders such as Nodem Capital focus on the $20m to $100m range that the large platforms skip.
Why is it hard for small and mid-market funds to find NAV financing?
The market is splitting in two. Facilities below $100m are too small for scale-focused platforms and too specialised for generalist banks, which leaves a gap that specialist lenders fill.
What can a mid-market fund use a NAV loan for?
The main uses are follow-on investments, new platforms, GP commitments and fund-level reserves or liquidity pending exits, rather than simply returning cash.
What is a recourse-light NAV facility?
A facility secured against distribution accounts and cash flows rather than equity pledges. It is often used where transfer restrictions make a pledge impractical, and it is gaining share in the mid-market for that reason.
Nodem Capital is an FCA-authorised NAV lender providing portfolio-backed credit facilities to GPs, LPs, mid-market funds and family offices in the $20m to $100m range. Learn more at nodem.com.
This article is educational and reflects the author's views as a market practitioner. Lender descriptions reflect general, publicly observable market positioning and are illustrative.