Nodem Completes $75m NAV Loan to Top Up a Continuation Vehicle Raise
A NAV facility bridged a modest shortfall in a GP-led continuation vehicle raise, allowing the transaction to close on schedule without renegotiating terms with committed secondary investors.
Transaction Overview
Nodem Capital completed a $75m NAV loan to an investment vehicle managed by a mid-market GP. The facility is secured against a diversified portfolio of LP fund interests held by the vehicle, with exposure to more than 60 underlying companies across industrials, healthcare, and technology.
The GP was in the process of closing a continuation vehicle for its flagship fund’s top-performing assets. The CV raise closed modestly short of its target, leaving a gap that would have either delayed the transaction or required reopening negotiations with the secondary buyers. The NAV facility bridged the difference, allowing the CV to close on the original timeline and terms.
Why This Structure
Continuation vehicle transactions are complex, multi-party processes where timing is critical. Once secondary investors have committed, delays risk losing those commitments. A NAV facility is faster and less disruptive than sourcing additional secondary capital, and the cost of the facility is modest relative to the value preserved by closing the transaction on schedule.
Facility Details
Facility size: $75m
Borrower: Mid-market GP investment vehicle
Collateral: Diversified LP fund interests (60+ underlying companies)
LTV: Below 25%
Interest: Cash pay with PIK toggle
Duration: 2 years
Use of proceeds: Continuation vehicle top-up financing
Repayment: Cash-flow sweep from underlying 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.