Fund Finance Partners Co-Founder, Zac Barnett, recently shared insights with Private Funds CFO featured in their latest Fund Finance Report. An excerpt follows, as well as a link to the full publication:
“I’ve been in the fund finance market for 25 years, and I have never seen a more challenging fundraising environment. That means fewer subscription deals are taking place, and those that are, are taking longer to come to fruition…Many GPs are currently unable to achieve the valuations they planned for via traditional exit routes, and they need access to additional liquidity to support follow-on investments or other capex initiatives in order to create additional value and push through to that eventual sale. That is driving demand for NAV finance. We have 40 active NAV lenders on our radar, all hungry for transactions. There is plenty of money to be deployed with an established roster of NAV lending specialists now joined by private credit lenders moving into the space.”