Private Equity Firms Are Borrowing Against Their Funds’ Assets
- Net-asset-value loans more prevalent amid deal drought
- Some investors view them as risky financial engineering
Private equity’s reliance on NAV loans has exploded in recent years as traditional sources of financing have become harder to access.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
Private equity firms are attempting to get blanket permission to borrow against their funds’ assets — a trend that’s exasperating some investors.
Stone Point Capital, which is raising money for its 10th buyout fund, is one such firm.