Nodem Completes $60m NAV Facility for a Mid-Market Buyout Fund
A fund-level NAV loan allowed a GP to execute a bolt-on acquisition for its top-performing portfolio company, preserving dry powder and avoiding an additional LP capital call.
Transaction Overview
Nodem Capital completed a $60m NAV loan to a mid-market buyout fund managed by a European GP. The facility is secured against a concentrated portfolio of eight direct equity investments in industrials and business services, with a combined NAV of approximately $350m.
The GP identified a bolt-on acquisition target for its strongest portfolio company. Rather than calling additional capital from LPs or selling a secondary stake, the fund used the NAV facility to finance the add-on directly. Repayment is structured as a cash-flow sweep, triggered by the expected exit of two mature portfolio companies within 18 months.
Why This Structure
The fund was substantially deployed and an additional capital call would have been poorly received by LPs already managing their own liquidity constraints. The NAV facility provided non-dilutive capital at the fund level, allowing the GP to execute a value-accretive transaction on the timeline the opportunity required.
Facility Details
Facility size: $60m
Borrower: Mid-market buyout fund (European GP)
Collateral: 8 direct equity investments in industrials and business services
LTV: Below 20%
Interest: Cash pay with PIK toggle option
Duration: 2 years
Use of proceeds: Bolt-on acquisition for portfolio company
Repayment: Cash-flow sweep from anticipated exits
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.