Direct Pledges In NAV Secondaries Facilities: Common Uses And Key Considerations

A quick look at the agenda for the Fund Finance Association's annual symposium (in less than two weeks!) highlights the continued growing interest in NAV secondaries facilities (i.e., there are now three events dedicated to the use of NAV, hybrid and secondaries facilities, which is a welcome addition given last year's standing room only crowds for the discussions on these topics). As such, we thought it would be topical to continue our discussion on these facilities, and more specifically, the use of direct pledges in NAV secondaries facilities. For our purposes, NAV secondaries facilities are loans to "secondary" private equity funds that are supported, either on a secured or unsecured basis, by the value of the private fund interests held thereby.