Insights

The bank balance sheet securitisation market has enjoyed significant growth over the past five years and looks set to continue apace on the back of clearer regulation

Institutional investors operate in a constantly changing economic and regulatory environment.

NAV Financing: A Hypothetical Performance Analysis The emergence of NAV Financing as an alternative private credit instrument in recent years has been accompanied by an increased investor focus on the potential role this new class of instruments can play within a broader private credit portfolio context. There are several reasons why NAV Financing is an […]

Net Asset Value (NAV) Financing refers to a form of lending that takes the NAV of the assets of a fund as collateral (in other words, lending which is secured against the underlying assets in the fund’s portfolio). Although some LPs might believe that NAV Financing is a new asset class which has only emerged […]

Executive Summary Private debt has emerged as an asset class that can provide resilient, high-yielding income, which is a diversifier from equity dividends and fixed income coupons. This is particularly attractive when higher-than-expected inflation figures have fed through to LGPS pensions over the last few years. This inflation is now baked into future pensions and […]

Executive Summary Yields up, leverage down and volumes of investment opportunities increasing. As expected, M&A activity picked up in Q4 2023 after a relatively subdued market earlier in the year. In 2024, we expect the volume of activity to be higher than in 2023, while remaining below the pre-rate hike peaks of 2019 and 2021. […]

NAV financing is not new and has been applied to many asset classes. However, the focus has now turned to NAV financing for private equity buyouts, always secured on a diversified portfolio of performing companies. NAV financing is an incredibly flexible financing tool and can be applied to solve a myriad of liquidity and capital […]

NAV financing is a very flexible fund finance tool that is used to help solve liquidity and capital needs. Pemberton’s solutions can enable the fund and/or its investors to unlock the value created in a fund, which can be re-deployed to support growth initiatives, preserve value or facilitate distributions to investors.

In a previous research piece1 we discussed the resilience of the Risk Sharing (SRT2) asset class to credit stress. The majority of investors we speak to acknowledge the attractiveness of Risk Sharing in terms of headline return and stability. One of the most pervasive questions we encounter, however, relates to the relative value of SRTs vis […]

The bank balance sheet securitisation market has enjoyed significant growth over the past five years and looks set to continue apace on the back of clearer regulation, an increasing number of banks having acquired the technology and economic incentives for banks to free up risk-weighted assets (‘RWA’) rather than raising capital. In this article, we […]

A Guide for Private Equity Stakeholder Engagement Net Asset Value (“NAV”) Financing has been a commonplace activity in banks for decades. The financing of the NAV of fund portfolios has been applied to all manner of liquid and illiquid asset classes for many years, including but not limited to equity funds, credit funds (bond or […]

In Pemberton’s most recently published article, Pemberton’s Risk Sharing Team, Olivier Renault and Anna Neri introduce how bank risk sharing transactions have become an increasingly popular tool for banks to hedge their loan portfolios and release capital, while aiming to illustrate the strong resilience of risk sharing transactions to credit stresses. The article further addresses: […]