Conversations: NAV Finance 101 with Pierre-Antoine de Selancy
Mar 7, 2024
auto_awesome
Explore the concept of NAV Finance in private equity, partnership values, and trends in financial tools. Learn about growth projections, COVID-19 impact, and risks in investment strategies. Understand the importance of trust and compliance in the financial industry.
NAV Finance provides capital to private equity investors using Net Asset Value, aiding in fund optimization.
NAV Finance supports add-on acquisitions by fund managers, crucial for enhancing portfolio company value.
Deep dives
Overview of NAV Finance and Its Growth
NAV Finance, also known as Net Asset Value Financing, focuses on providing capital to investors in private assets within the private equity industry by leveraging the Net Asset Value of their investments. With the private equity industry valued at $7 trillion and significant dry powder available for investment, NAV Finance has seen substantial growth in recent years. The market has witnessed over $50 billion in deal flow in 2023, marking a 50% increase from the previous year, with expectations of reaching $100 billion in deal flow in 2024.
Role of NAV Finance in Creating Additional Value
One key aspect of NAV Finance is its role in aiding private equity fund managers in optimizing their funds. By providing additional capital for portfolio investments, NAV Finance supports value creation within the private equity landscape, particularly focusing on add-on acquisitions. This form of financing aligns with the current trend where two-thirds of investments by fund managers are add-ons, emphasizing the importance of capital for enhancing portfolio company value.
Outlook and Trends in NAV Finance
The future outlook for NAV Finance suggests a continued demand for capital to support add-on strategies and fund management organizations. Notably, there is a growing trend where fund managers are investing more in their funds, signaling a need for financing solutions. The evolving landscape of NAV Finance indicates a shift towards providing financing for organizations themselves, with a focus on long-term partnerships and value creation. Despite being a relatively young industry, NAV Finance is poised for significant growth and further innovation.
Learn about the next generation of private credit with Pierre-Antoine de Selancy, Cofounder and Managing Partner of 17Capital. 17Capital, which partnered with Oaktree in 2022, is a market leader in NAV finance. Pierre-Antoine explains what NAV finance is, why it has become so popular, and why its growth is likely to accelerate in the coming years.
Get the Snipd podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share & Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode