NAV Facilities for Secondaries Funds: Legal, Structural, and Credit Considerations
Author: Steven Starr.
Source: Volume 42, Number 03, March 2026 , pp.31-36(6)
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Abstract:
This article outlines the core structuring considerations for NAV facilities in the secondaries context, including SPV design, collateral packages, transfer‑restriction navigation, parent‑level credit support, covenant frameworks, and information‑sharing constraints. It aims to give practitioners a practical roadmap for balancing lender protections, GP authority, and the operational realities unique to secondaries portfolios.Keywords: Special Purpose Vehicles; Limited Partnership (“LP”) Positions; Direct vs. Indirect Pledges/Transfers; GP Consent; Parent Fund Credit Support; Borrowing Base Mechanics; Valuation Challenges and NAV Adjustments
Affiliations:
1: Clifford Chance US LLP.