PE Firms Seeking Cash Are Fueling a Boom in Niche NAV Lending

Net asset value lending is set to grow as private equity firms seek flexible ways to borrow and investors chase higher returns than those available in public markets, according to Stephen Quinn, co-head of credit at 17Capital.

The London-based lender, which has the backing of investment behemoth Oaktree Capital Management, provides buyout firms with debt based on the value of the assets within their investment portfolios. The market for so-called NAV lending is becoming an increasingly significant corner of the $1.4 trillion private debt market, as private equity firms seek alternate ways of generating liquidity and managing their ...