Capital Allocators – Inside the Institutional Investment Industry cover image

Tim Lyne – Three Decades of Private Credit at Antares (EP.346)

Capital Allocators – Inside the Institutional Investment Industry

NOTE

Attractive Use Cases for a Sponsor to Take a NAV Loan

A sponsor may take a NAV loan to inject capital into one of their businesses without wanting to do a capital call, and this is the primary use. Sometimes it may be used as a dividend, but most often it is used for one of their portfolio companies. There may be concerns about it being leverage on leverage, but the primary use is to inject capital into a business without a capital call.

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