Bank of England official raises alarm over private equity use of NAV loans as exits slow
A BoE official has raised concerns over the private equity sector’s growing use of NAV financing to meet liquidity demands during an exit slowdown.
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A BoE official has raised concerns over the private equity sector’s growing use of NAV financing to meet liquidity demands during an exit slowdown.
Concerns over claiming tax treaty benefits and simplification of withholding tax guidelines.
There has been an uptick in new lenders willing to provide NAV financing. Spike in interest in NAV lending was explained by sponsors hesitant to call capital from LPs during pandemic uncertainty and inability of private equity-backed companies to obtain affordable financing.
Crestline Investors, a credit-focused institutional alternative asset manager, announced that it has closed its second fund complex focused on Fund Finance, including NAV loans and preferred equity offerings, with commitments of $1 billion and additional overflow interest.
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