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Course Details

Course Information
  • smart_display Format

    Live Online with Live Q&A

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Banking and Finance

Date & Time
  • event Date

    Thursday, May 29, 2025

  • schedule Time

    1:00 PM E.T.

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

$347.00
CLE
ALL

This CLE webinar will discuss the rapidly growing and evolving market for net asset value (NAV) credit facilities. The panel will examine the typical structure of NAV facilities and will review the advantages and disadvantages of NAV facilities for both lenders and borrowers.

Faculty

Sherri Snelson
Partner
White & Case LLP

Ms. Snelson has extensive experience acting as lead counsel for lenders, private equity funds, and their portfolio companies in connection with leveraged finance and fund/portfolio finance transactions. She is dual qualified in New York and England & Wales and practiced previously in the UK. Ms. Snelson has acted as lead counsel on hundreds of finance transactions that span a wide array of industries and jurisdictions throughout the Americas, Europe and Asia. Hers experience also includes advising investors and borrowers in connection with both in- and out-of-court debt restructurings, DIP financings, exit financings, 363 sales, English administrations and schemes of arrangements, and insolvency related matters in several European jurisdictions.

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Justin Gaudenzi
Ropes & Gray - New York

Description

This webinar will focus on NAV financings to private equity (PE) funds where the value of the portfolio companies comprising the investment assets of the PE fund provide support for the borrower's loan obligations. PE sponsors are increasingly taking advantage of this previously underused area of the fund financing market to help manage liquidity and support fund performance.

NAV credit facilities are often used by PE funds after the fund has matured beyond its investment period, when it has typically exhausted most of its investor capital commitments. After the investment period, funds generally cannot access borrowing availability under a subscription-backed credit facility because they do not have sufficient remaining uncalled capital commitments. With a subscription-backed credit facility unavailable, the fund may turn to a NAV credit facility to provide the liquidity necessary to manage its portfolio and investment activities.

NAV credit facilities allow sponsors to obtain the liquidity necessary to effectively manage the PE fund and maximize its performance. Fund investors can also receive a return on capital without resorting to a sale and foregoing any potential additional upside from holding the investments longer. Lenders can also benefit from the attractive structuring and pricing options that NAV credit facilities present.

Listen as our authoritative panel explains the features and mechanics of NAV credit financing. The panel will also address the advantages and disadvantages of NAV credit facilities for both lenders and borrowers.

Outline

  1. Overview of NAV credit facilities
  2. The rise of NAV financing in the PE market
  3. Structure and collateral of NAV facilities
  4. Differences between NAV credit facilities and subscription-backed credit facilities
  5. Advantages and disadvantages of NAV credit facilities
    • For funds, sponsors, and investors
    • For lenders
  6. Business and legal considerations
    • Collateral package
    • Loan to value
    • Cash flow/repayments
    • Minimum assets/diversity in investment portfolio
    • Flexibility
  7. Practical considerations and key takeaways

Benefits

The panel will address these and other key issues:

  • What are the market conditions that are prompting the rapid growth in NAV credit facilities?
  • Why would PE funds use NAV financing to meet their needs and achieve various objectives?
  • What are the business and legal issues and considerations with NAV financings?
  • What are the advantages and disadvantages of NAV financing for PE funds, sponsors, investors, and lenders?