Funds finance in 2020: NAV facilities set to grow as funds reach middle age
In 2019, the provision of Net Asset Value (NAV) facilities to mid-end-of-life private equity funds that are well-invested or seeking additional liquidity gathered pace. Allowing for dividend recaps or additional bolt-on acquisitions to be made, banks and alternative lenders are increasingly overcoming their historic aversion to this form of financing, with new lenders appearing in the market. And with continued uncertainty slowing down the timing for potential investments, we can expect this trend to accelerate further in 2020.
Leon Stephenson, Partner at Reed Smith London office discusses the upcoming Funds Finance trends for 2020 in Private Debt Investor.