Liquidity Solutions
Model the all-in borrowing cost of a NAV-backed credit facility with real-time LTV-based pricing, covenant monitoring, and distribution capacity analysis.
What It Is
Unlock liquidity without selling your portfolio
Family offices with private equity portfolios often have strong returns locked inside long-dated funds while needing cash today — for co-investments, commitments, or rebalancing.
A NAV facility lets you borrow against the net asset value of your existing fund holdings instead of selling stakes at a secondary discount. The portfolio stays intact, the upside stays yours, and you access liquidity on your own timeline.
Portfolio Intact
Keep your stakes, keep the upside
On-Demand Cash
Draw only what you need, when you need it
Full NAV Redemptions
Redeem at net asset value with no discount
Flexible Timing
Access liquidity on your own timeline
How It Works
Everything revolves around one number: your LTV
Pricing Scales with LTV
Low leverage gets the tightest spread. As you borrow more, rates step up through a fixed grid — the facility naturally rewards conservative use.
Distributions Follow LTV
At low LTV, you keep 100% of fund distributions. As leverage rises, more cash gets trapped inside the structure to build a buffer or repay the loan.
Two Covenants Define Limits
LTV must stay below 65% (breach triggers a 2% rate step-up) and loan-to-cost must stay below 85%. A drawstop prevents new draws above 50% LTV.
Four Cost Components
Interest on drawn amounts, a commitment fee on undrawn amounts, a one-time arrangement fee, and a small annual admin fee — rolled into a single all-in percentage.
Model Your Scenario
Adjust the sliders to match your portfolio and see two key outputs in real time: Cost to Borrower — annualized all-in expense as a % of drawn capital, and Distribution Capacity — the share of incoming fund distributions you can actually take out at your current leverage level. More leverage means higher cost and less cash out. The right balance depends on your return profile and liquidity needs.
Portfolio & Loan
Define fund NAV and borrowing parameters
+1.0% added to interest rate
Facility Terms
Hold period and utilization assumptions
LTV
25.00%
20–30%
LTC
20.83%
vs 85% limit
Interest Rates
Floating
10.40%
Euribor + 750bps
Fixed
9.50%
Grid rate
Covenant Status
LTV Covenant
< 65%
LTC Covenant
≤ 85%
Drawstop
LTV ≤ 50%
Lender MOIC
≥ 1.12x
Annual Cost Breakdown
| Component | Floating | Fixed |
|---|---|---|
Interest Cost €20.833m drawn | €2.167m | €1.979m |
Undrawn Fee €4.167m undrawn × 1.00% | €0.042m | €0.042m |
Arrangement Fee (amortized) €25.000m × 1.00% ÷ 3yr | €0.083m | €0.083m |
Administrative Fee €35k p.a. flat | €0.035m | €0.035m |
| Total Annual Cost | €2.327m | €2.139m |
All-In Cost (% of Drawn)
11.17%
Floating
10.27%
Fixed
Annual
Total Cost Over Hold
€6.980m
Floating
€6.418m
Fixed
3 years
Lender MOIC (Floating)
1.34x
Above 1.12x floor
Distributable FCF
50%
Of free cash flow
Pricing & Distribution Grid
| LTV Band | Spread (bps) | Fixed Rate | Distributable |
|---|---|---|---|
| < 15% | 600 | 8.0% | 100% |
| 15–20% | 700 | 9.0% | 75% |
| 20–30% | 750 | 9.5% | 50% |
| 30–40% | 850 | 10.5% | 25% |
| 40–50% | 900 | 11.0% | 0% |
All calculations are indicative only and provided for illustrative purposes. Actual borrowing costs, covenant terms, and facility conditions may differ materially based on lender requirements, market conditions, fund-specific factors, and final documentation. This tool does not constitute financial advice, an offer to lend, or a commitment to provide financing. Please consult with your financial advisor or lending institution for actual terms.
Interested in learning more?
Speak with our team to discuss how a NAV-backed facility could work for your portfolio.