Unlocking value creation with NAV Financing
NAV financing is a highly attractive asset class, which we believe presents an exciting investment opportunity and is set to grow exponentially, becoming larger than the sub lines business which today is over $500bn in volume globally. For insights into key trend divers and LP Perspectives download any of the below articles:
NAVigator Series
A Hypothetical Performance Analysis
NAV Financing
An Opportunity for Insurance CIOs
NAV Financing Strategy
Access Opportunity to an exciting new asset class (June 2023)
PDI Expert Q&A
With Pemberton’s Head of NAV Financing (October 2023)
The Rise of NAV Financing attracts attention of Insurance CIOs
Insurance Asset Risk Webinar
A Highly Attractive Asset Class
Pemberton’s NAV Financing strategy will provide financing solutions which are predicated on the underlying value of private equity funds’ performing investment portfolios. Our solutions can provide a valuable tool for the private equity ecosystem to unlock value created in funds post their investment period, which can be recycled to aim to maximise their return targets (reinvestments to support MOIC or distributions to support the funds IRR).
The strategy focuses on:
- Providing capital to US and European buyout funds, general partners and limited partners;
- Tailored structures from senior loans to preferred equity cross collateralised against the value of the fund’s underlying investments;
- Unlocking capital which can be returned to investors or used to support portfolio investments, seeding new strategies and other forms of liquidity and capital requirements.
Our strategy addresses the needs of a large and growing market in excess of US$35bn1, which is underserved by banks and a small number of niche providers2 . Pemberton is well placed to address this need, given our sole focus on credit (no competing equity interests), sector expertise and extensive private equity relationships. We aim to deepen our position as a core financing partner to the private equity community.
The strategy is managed by Portfolio Manager Thomas Doyle.
