Fund Finance

The bank has leapt over hurdles to make a product that could reshape the fund finance industry.

Affiliate title Private Funds CFO wants to know who should be included in its New Faces of Finance, celebrating the achievements of finance professionals working across the private markets.

NAV loans for LP distributions were a hot topic – some might say even a spicy one – at an industry gathering in Paris this week.

NAV’s inherent synergies with secondaries means the strategy is gaining significant traction among East Asian LPs.

‘It can be a driver of potential fees,’ Dan Faigus tells packed room at Private Funds CFO event.

Collateralised fund obligations and rated feeder funds are set to become an integral part of the private markets ecosystem, write Evercore’s Ahmet Yetis, Raquel Clarke, Ned DiLisio and Chris Hope.

Partners Group Fund Financing Solutions will invest primarily in GP-led and LP-led NAV loans and opportunistic investments, including NAV preferred equity investments.

Sub line margins rose 17% last year as fund financing becomes more lender-friendly, according to Haynes & Boone’s Fund Finance Annual Report 2023.

Speaking at the HKVCA’s Asia Private Equity Forum on Friday, Eric Mason, head of PE at the Church Pension Fund, told delegates that using NAV facilities to create distributions increased financial risk.

A Capstone survey has found that more than half of LPs consider NAV financing and preferred equity a ‘poor’ way to generate liquidity.