Dawn: NAV loans used for LP distributions are unpopular and overpriced
Nigel Dawn · Nigel Dawn - Secondaries in Private Markets (EP.378) · Apr 8, 2024 · at 34:00
Nigel Dawn, Global Head of Private Capital Advisory at Evercore, explains institutional LP resistance to private equity funds using NAV-based leverage to manufacture artificial liquidity distributions.
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“NAV loans that are raised against a portfolio to send capital back to LPs, very unpopular. Very high priced. Many LPs don't like them. They can raise capital cheaper themselves. So those are not popular.”
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