As the private equity market has become increasingly competitive, GPs have adopted new strategic capital solutions to better manage their portfolios, LP relationships, and internal operations. Subscription lines, GP stakes transactions, and continuation vehicles are all strategic capital solutions employed by sophisticated GPs designed to compete more effectively in today’s private equity market. NAV loans — capital formed by borrowing against the Net Asset Value of a private equity fund — are another strategic capital solution for GPs we feel are poised for significant growth in the coming years.
ORIX USA’s GP Solutions team focuses on crafting NAV loans and GP management company financing solutions for private equity sponsors. We offer the following as an introduction to NAV loans — specifically single-fund or ‘Primary NAV’ transactions — for GPs and LPs exploring this rapidly growing capital solution.