NAV loans

Based on the most helpful WSO content, NAV (Net Asset Value) loans are becoming increasingly common, especially in private equity and real estate contexts. While specific details on NAV loans aren't directly mentioned in the knowledge base, here are some general insights from related lending structures:

1. Structure: NAV loans are typically secured against the net asset value of a fund's portfolio. They are often used by funds to provide liquidity without selling assets. The structure can vary, but they generally involve a borrowing base determined by the value of the underlying assets.

2. Pricing: Pricing for loans in similar contexts (e.g., bridge loans, construction loans, or other asset-backed loans) can range widely. For example:

   • Bridge loans have seen rates approaching 7% or higher recently.
   • Rates for other loans, like multifamily or industrial, are often in the range of L + 250-400 bps, depending on the product and risk profile.

Given the variability in NAV loans, the exact pricing will depend on factors like the quality of the underlying assets, the leverage ratio, and the lender's risk appetite. If you're looking for more specific ranges or examples, it might be worth exploring recent threads or discussions on NAV loan trends.

Sources: Loan Terms, Origination Fees on +$100MM Loans, Overview of Leveraged Finance, https://www.wallstreetoasis.com/forum/real-estate/state-of-the-cre-debt-markets?customgpt=1, So you want to work in CRE Debt? Here are the options...