NAV Loan Investment Parameters

Nodem Capital is a specialist NAV lender focused on portfolio-backed credit facilities for family offices, fund managers, and holding companies. We lend against the portfolios that are too complex for a private bank and too small for the largest NAV lending platforms. If a portfolio sits between those two, it is a Nodem facility.

Every facility is bespoke and terms are subject to underwriting, but the parameters below reflect the range of what we typically provide.

Facility Structure

• Facilities range from $20 million to $100 million and above. Loan-to-value is typically up to 30%, with higher ratios considered for real estate portfolios and highly diversified LP books.

• Interest can be structured as cash pay or PIK (Payment-in-Kind). PIK removes all cash servicing burden during the facility term by capitalising interest until repayment is triggered by a liquidity event.

• Duration is typically 1 to 5 years, extendable, and structured around the portfolio's expected distribution timeline. Draws are agreed upfront, usually one or two, with undrawn amounts attracting a lower fee.

• Repayment is structured as a cash-flow sweep from distributions and exits. Early repayment is accommodated without penalty. Security takes the form of distribution account pledges and equity pledges over holding vehicles, with recourse-light structures available where transfer restrictions apply.

• Nodem has no involvement in the day-to-day management of the portfolio or its underlying assets.

• Facilities can be denominated in USD, EUR, or GBP, with cross-currency structures available.

• Term sheets are typically issued within two weeks of receiving good-quality portfolio data. Funding follows approximately one month after the term sheet.

Who We Work With

• Nodem's borrowers are predominantly private asset holders who need liquidity without selling their portfolios.

• Single-family offices and ultra-high-net-worthaccount for 65% of enquiries. They typically seek acquisition financing, capital call bridges, funding for generational transitions, refinancing of existing bank debt, and tax planning liquidity.

• General Partners account for 35% of enquiries. Common use cases include follow-on acquisitions for portfolio companies, accelerating DPI ahead of a successor fund raise, GP commitment financing, and continuation vehicle top-ups.

Common Use Cases

• Acquisition and co-investment financing is the most common reason borrowers approach Nodem. A time-sensitive investment opportunity requires capital faster than a secondary sale or bank process can deliver. The NAV facility provides immediate capital secured against the existing portfolio, without selling assets or calling additional LP capital.

• Capital call bridges are used when overlapping capital calls exceed a family office's liquid reserves. The alternatives, defaulting on LP commitments or selling secondary positions at a 25 to 40 percent discount, are significantly more expensive than a NAV facility. The facility bridges the gap until distributions arrive from maturing positions.

• Refinancing existing bank debt replaces cash-pay bank facilities with PIK-based NAV loans. Bank facilities impose cash interest that creates a fundamental mismatch with illiquid portfolios. A PIK structure resolves this by capitalising interest over the facility term, with repayment triggered by actual liquidity events.

• Tax planning and generational transition facilities provide liquidity for tax obligations, estate restructuring, or wealth transfers without crystallising embedded capital gains. For families holding private equity with significant unrealised gains, borrowing against the portfolio avoids triggering capital gains tax entirely.

• Continuation vehicle financing bridges shortfalls in GP-led CV raises, allowing transactions to close on schedule without renegotiating with committed secondary investors.

• DPI acceleration enables GPs to make distributions to LPs ahead of successor fund raises without forcing premature exits of high-performing portfolio companies.

• GP commitment financing funds a GP's personal commitment to their own fund, freeing personal capital for other purposes.

How Nodem Compares

• NAV lending is available from several types of provider, each serving a different segment.

• Private banks are the default lender for most family offices, but they are typically unable to accept illiquid private equity or venture capital fund interests as collateral. Their strength is Lombard lending against listed securities, and they rarely offer PIK interest. Term sheets generally take four to eight weeks.

• Large-cap NAV lending platforms serve the institutional end of the market, with minimum facility sizes of $100 million and above. They accept PE fund collateral but are historically GP-focused and offer limited flexibility on mixed asset class portfolios. Term sheets typically take four to twelve weeks.

• Nodem sits between these two. Facilities range from $20 million to $100 million and above. Illiquid PE, VC, real estate, and mixed portfolios are the core focus. PIK interest is available. 65% of enquiries come from family offices. Term sheets are typically issued in approximately two weeks. Real estate collateral is accepted with higher LTV ceilings. Facilities can be cross-border and multi-currency.

What We Need to Get Started

• Initial feedback is provided within days. Where there is a fit, a term sheet typically follows within two weeks, subject to the quality of data provided. Funding follows approximately one month after the term sheet.

• To begin a portfolio review, we need a portfolio composition showing the asset list or fund positions with sector, geography, and vintage information. We need the most recent quarterly or audited NAV valuations with valuation dates. Any visibility on upcoming liquidity events, expected exits, or fund maturities is helpful. And we need the intended facility size, use of proceeds, and preferred timing.

• Underwriting uses an independent valuation agent and does not disrupt portfolio companies or LPs. There is no cost or obligation attached to a portfolio review.

• To arrange a confidential portfolio review, contact Alex Branton at abranton@nodem.com or visit nodem.com/contact.