Financely · NAV Facility Refinancing
NAV loan refinancing replaces a maturing or strained portfolio facility with new debt sized to today's assets, not the ones you had at signing.
Start 9 to 12 months before maturity. Replacement lenders re-underwrite the portfolio from scratch.
For how NAV borrowing works in the first place, including eligibility and security, see our guide to NAV loans for family offices and funds. This page covers one situation: your existing facility needs replacing.
When Borrowers Come to Us
Maturity Approaching
Exits have slipped, the balance is still outstanding, and the incumbent will not extend on acceptable terms.
Covenant Pressure
Markdowns have pushed LTV toward the trigger and the cure options in the current documents are expensive.
Lender Exit or Repricing
The incumbent is cutting fund finance exposure or wants materially higher margins and tighter sweeps.
Size the Refinancing Gap
A replacement lender sizes against current eligible value. If that produces less than the outstanding balance, the shortfall must be closed before signing.
Quick Gap Check (USD millions)
Illustrative only. Actual sizing depends on lender eligibility tests, concentration limits and reserves.
What You Receive
- Refinancing position paper: outstanding balance, current eligible value, maturity and covenant headroom, and a realistic sizing range.
- Gap-closing plan: partial paydown from realizations, hybrid structures, preferred equity, or a smaller facility with an extension option.
- Updated credit memorandum: rebuilt around the portfolio as it stands, with revised exit timing and downside cases.
- Lender approach and term comparison: replacement proposals benchmarked against the incumbent's extension offer.
- Payoff coordination: timetable for payoff letters and security release, worked through with your counsel.
Who This Is For
GPs, family offices and investment holding companies with an existing NAV or hybrid facility of USD 5 million or more, maturing within 18 months or under covenant stress. Engagements are paid advisory mandates with scope and fee agreed upfront.
FAQs
Should we ask the incumbent for an extension first?
Usually, yes. A credible replacement process running in parallel tends to improve the extension terms on offer.
Can we refinance while in breach?
It is harder but possible. Expect lower sizing and closer diligence, and raise it early so standstill timing can be planned.
How long does a refinancing take?
Plan for several months. Valuation updates, consents and payoff mechanics drive the timetable more than the term sheet.
Refinance Your NAV Facility
Send the outstanding balance, maturity date, current portfolio schedule and the incumbent's latest position.
Submit Your TransactionLending Into Refinancings?
Build a dedicated origination channel that captures borrowers replacing maturing NAV debt.
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