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ARTICLE · 26 MAY 2026

Sponsor-Arranged Investor Loan Programs

Mayer Brown
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Large family offices and institutional investors are increasingly turning to NAV loans as a portfolio management tool for their alternatives holdings.

United StatesFinance and Banking
Kiel Bowen
Kiel Bowen
Michael D. Kwasigroch
Michael D. Kwasigroch
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Introduction

Large family offices and institutional investors are increasingly utilizing NAV loans on their alternatives holdings as a portfolio management tool. As allocations to alternatives have scaled, so, too, has the desire to introduce financing at the LP level in a manner that is repeatable, programmatic, and operationally sustainable.

Traditional investor NAV facilities—loans made directly to investors and secured by their private fund interests—are conceptually straightforward, but have proven difficult to scale in practice. Operational burden, general partner consent constraints, and the complexity of coordinating across multiple funds and sponsors have limited broader adoption of this financing tool.

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