Nodem Completes $35m NAV Loan to a Nordic Family Office to Bridge Capital Calls
A PIK-based NAV facility bridged capital calls across five fund commitments, avoiding LP default risk and preserving portfolio positions during a period of compressed deployment schedules.
Transaction Overview
Nodem Capital completed a $35m NAV loan to a Nordic single-family office. The borrower holds a diversified portfolio of LP interests in Scandinavian and pan-European buyout, growth, and venture funds, with outstanding uncalled commitments across five managers.
A compressed deployment environment created overlapping capital calls that, taken together, exceeded the family office’s liquid reserves. The alternative was to default on one or more commitments or sell secondary positions at a significant discount. The NAV facility bridged the gap, providing immediate capital secured against the existing portfolio.
Why This Structure
LP defaults carry severe consequences: forfeiture of unfunded commitments, loss of existing fund interests, reputational damage with GPs, and potential exclusion from successor funds. The cost of a NAV facility is substantially lower than any of those outcomes. The PIK structure ensured no cash drain during the bridge period, with repayment tied to expected distributions from the family’s most mature fund positions.
Facility Details
Facility size: $35m
Borrower: Nordic single-family office
Collateral: Scandinavian and pan-European buyout, growth, and venture LP interests
LTV: Below 25%
Interest: PIK
Duration: 18 months
Use of proceeds: Capital call bridge financing across five fund commitments
Time to funding: Under 3 weeks
About Nodem Capital
Nodem Capital is a specialist NAV lender providing portfolio-backed credit facilities, typically $10m to $100m and above, to family offices, GPs, and private funds. Nodem is authorised and regulated by the Financial Conduct Authority. For enquiries, contact abranton@nodem.com or visit nodem.com.
For definitions of the terms used in this case study, see the NAV lending glossary.