In Alternative Views, Private Equity Wire® goes behind closed doors with those in the know to get the latest on private markets. In this episode we discuss NAV financing with Fokke Lucas, partner at 17Capital, a provider of NAV financing for the private equity industry.
With private equity firms continuing to face an exit backlog, NAV financing has seen increased demand as a way to meet the liquidity needs of their LPs, without having to offload assets below their valuation expectations.
We discuss the causes of demand for NAV financing (0:48); whether current market instability is a tailwind for adoption (6:19); rising participation from larger, more institutionalised managers (10:09); and valuation frequency (12:22).
