NAV financing—loans to funds supported by the net asset value of their portfolios—has become increasingly popular with financial sponsors over the past year. In securing these NAV financings, many sponsors have turned to holding company structures (“Holdco Structure”) to address potential considerations in these transactions.
This article, written in partnership with global law firm Proskauer Rose, outlines how the Holdco Structure helps navigate key considerations in NAV financings, including:
- Limited partnership agreements
- Collateral lite financing
- Guarantees and equity commitment letters
- Targeted financing or refinancing for portfolio companies
- Existing indebtedness
- Tax-exempt investors
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Matthew Kerfoot, Proskauer Rose LLP
Mike Custar, William Blair
Kyle McManus, William Blair
Quinn Kolberg, William Blair
Tom Marking, William Blair
Jake Stuiver, William Blair