Matt Hansford, Fund Solutions UK, recently featured on the panel of Orrick and Ganymede Capital's Fund Finance eRoundtable. The panel discussion covered the latest developments in fund level NAV borrowing, subscription lines and GP financing in the post-COVID world.
NAV Financing Solutions
Growth without limits
How to continue creating value even when undrawn commitments are running low.
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A challenging market as a result of COVID-19 has meant that private equity firms are seeking ways to protect current portfolio value, pursue accretive opportunities and in some instances accelerate liquidity events where exits may have been delayed. Funding these requirements can be challenging as subscription lines max out, remaining capital is reduced and asset level leverage is more challenging to implement.
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Investec NAV Financing can fulfil your equity needs at the cost of debt, looking to the underlying value of the portfolio to provide fresh capital when subscription lines are no longer relevant. These bespoke solutions allow GPs to continue making acquisitions, accelerate distributions and support businesses through temporary setbacks, outside of the investment period of the fund.
Matt Hansford explains why firms are using NAV financing, how they work, the benefits and who NAV Financing is applicable to
Matt Hansford, Head of NAV, Investec Fund Solutions
Matt Hansford explains why firms are using NAV financing, how they work, the benefits and who NAV Financing is applicable to
Matt Hansford, Head of NAV, Investec Fund Solutions
Orrick and Ganymede Capital's Fund Finance eRoundtable
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Why should I use it?
Build value
- Finance accretive bolt-ons
- Fund asset growth initiatives
- Buy out co-investors
- Efficiently capitalise minority equity positions
- Bring forward recyclable commitments
- Win founder-owned companies by levering at the Holdco, not
the Opco
Protect value
- Avoid or cure covenant breaches
- Balance sheet clean-up
- Liquidity to weather business cycles
- Participate in punitive pay-to-play rounds
- Enable hedging options
Accelerate distributions and facilitate fund restructurings
- Smooth the cashflow and IRR profile of the fund
- Improve DPI with a dividend
- Use instead of multiple portfolio company refinancings
- Buy out existing investors
- Efficiently fund follow-on capital for continuation vehicles
Download our factsheet
NAV Financing Solutions: Growth without limits
For a quick and easy way to find out how NAV Financing could work for you, including details on pricing, LTVs, structures, terms and covenants, view our NAV Financing Fact Sheet here.
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NAV Financing – helping Funds and GPs seize opportunities
Matt Hansford explains NAV Financing and its potential to help Funds and GPs realise their growth.
Find out more
Matt Hansford
Fund Solutions
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