NAV Lending With Co-Investment Vehicles

NAV Lending With Co-Investment Vehicles

A sponsor may hold one portfolio company through a main fund plus co-invest vehicles. That can complicate the lender view of ownership, control, distributions and enforcement.

For NAV Lending With Co-Investment Vehicles, the issue is not only whether the portfolio has value. The lender must understand how that value supports borrowing capacity, how cash reaches the borrower and what protections remain if values fall or exits are delayed.

Why NAV Lending With Co-Investment Vehicles Matters to Lenders

NAV facilities look through the fund borrower to underlying assets and distributions. Documentation, valuation, transfer rights and cash control therefore influence recoverability just as much as headline NAV. In NAV Lending With Co-Investment Vehicles, this point should be applied to the actual mandate, portfolio or target market rather than a generic template.

Key Underwriting Questions for NAV Lending With Co-Investment Vehicles

• ownership split.
• common control.
• distribution allocation.
• co-investor consent rights.
• drag and tag mechanics.

What the Fund Should Prepare for NAV Lending With Co-Investment Vehicles

The fund should reconcile its organization chart, LPAs, side letters, portfolio ownership, shareholder agreements, valuation policy, portfolio-company debt, distribution history and expected exit schedule. Each borrowing-base assumption should be traceable to a document or portfolio data point. In NAV Lending With Co-Investment Vehicles, this point should be applied to the actual mandate, portfolio or target market rather than a generic template.

Negotiating NAV Lending With Co-Investment Vehicles

Borrowers and lenders typically negotiate both the quantitative test and the consequence of failing it. Relevant terms can include haircuts, cure periods, cash traps, mandatory prepayments, valuation rights, release conditions, concentration caps and lender control over distributions. In NAV Lending With Co-Investment Vehicles, this point should be applied to the actual mandate, portfolio or target market rather than a generic template.

FAQ About NAV Lending With Co-Investment Vehicles

Does every lender structure NAV Lending With Co-Investment Vehicles the same way?

No. Collateral, advance rates, concentration tests, pricing and covenant design vary with the fund strategy, asset count, portfolio quality, lender type and jurisdiction. In NAV Lending With Co-Investment Vehicles, this point should be applied to the actual mandate, portfolio or target market rather than a generic template.

Can a fund negotiate more flexibility in NAV Lending With Co-Investment Vehicles?

Potentially. Flexibility usually depends on diversification, valuation confidence, sponsor quality, remaining fund life, exit visibility and lender protection elsewhere in the structure. In NAV Lending With Co-Investment Vehicles, this point should be applied to the actual mandate, portfolio or target market rather than a generic template.

When should outreach begin for NAV Lending With Co-Investment Vehicles?

The strongest process normally begins after the fund has a defined use of proceeds, current valuations and enough fund-document diligence to identify borrowing or collateral restrictions before term sheets are requested. In NAV Lending With Co-Investment Vehicles, this point should be applied to the actual mandate, portfolio or target market rather than a generic template.