Dry Powder: The Private Equity Podcast
NAV Loans Under the Microscope w/ 17Capital’s Pierre-Antoine de Selancy
Apr 15, 2025
Pierre-Antoine de Selancy, co-founder of 17Capital, shares his insights on the growing trend of NAV loans in private equity. He discusses the balance sheets' evolving role for General Partners, emphasizing the need for financial resilience. The conversation touches on how NAV loans address liquidity challenges while highlighting skepticism from Limited Partners. Additionally, de Selancy explores the transformative impact of AI on investment analysis, showcasing innovative approaches that enhance capital efficiency in the evolving financial landscape.
21:08
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Quick takeaways
- NAV loans offer a crucial financing solution for private equity investors dealing with illiquid assets, enabling better capital deployment and investment pacing.
- The evolving landscape of liquidity products highlights the need for innovative strategies and tools, posing challenges for limited partners in evaluating performance amidst varying leverage levels.
Deep dives
Understanding NAV Loans
NAV loans, or loans tied to the net asset value of funds, represent a growing trend in the private equity sector. These loans are particularly valuable for investors in illiquid assets who struggle to find leverage due to traditional banking constraints. Seventeen Capital identifies that not all NAV loans are the same; their applications vary based on the unique financial needs of investors and the broader market landscape. As this practice evolves, it reflects a maturation process within the financial services industry, facing scrutiny from some while being embraced by others.
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