Dry Powder: The Private Equity Podcast NAV Loans Under the Microscope w/ 17Capital’s Pierre-Antoine de Selancy
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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.
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NAV Loan Skepticism
- NAV loans, tied to a fund's net asset value, are gaining attention, but LPs have some skepticism.
- Some see them as simply moving money around without real liquidity benefits.
NAV Loans: A New Tool
- NAV lending is a new financial practice, so criticism is expected.
- Like any leverage, it can be risky if used improperly but powerful if used well.
17 Capital's Evolution
- 17 Capital initially lent to LPs who struggled to get leverage.
- They expanded to GPs for various uses, including further portfolio company investments.