How Family Offices Can Access Liquidity Without Selling Private Assets

What Is NAV Lending?

NAV lending is borrowing secured by the net asset value (NAV) of a portfolio of private investments—typically private equity funds or direct holdings in private companies.

Here’s how it works: a lender provides a loan to a fund, holding company, or family office special purpose vehicle (SPV). The loan is secured by the equity value of multiple underlying portfolio companies, not by a single business. The structure typically includes:

• Covenants such as maximum loan‑to‑value (LTV) ratios and minimum portfolio diversification
• Cash sweeps—or cash recouped from successful monetization of investments that is used to repay the loan—when LTV thresholds or concentration limits are exceeded
• Customized terms to address the specific capital need, with a wide range of loan sizes (usually spanning $5 million to $1 billion), LTVs (ranging between 5%–25%) and maturities (3–5 years is common).

How NAV Lending Empowers Family Offices

For families heavily invested in private markets, NAV lending offers a smart way to access funds without having to sell off parts of their portfolio or illiquid investments. Unlike traditional company-level financing, which can be costly and dilute ownership, NAV lending provides a more efficient alternative. It allows families to seize new investment opportunities, make strategic acquisitions, or support existing portfolio companies facing challenges. Plus, it helps optimize portfolios by freeing up capital for new commitments or rebalancing. These compelling benefits may help explain why NAV lending has become increasingly popular, with the market reaching $150 billion in 2025.^[1]

When a Family Office Should Consider NAV Lending

While NAV loans aren't one size fits all, they align well with several common family office objectives:

Case Study: Deployment Optimization for a Diversified Portfolio

Consider a family office managing a diverse portfolio that included six operating company investments totaling $240 million—with a current NAV value of $340 million—and eight limited partner (LP) investments in private equity and private credit funds. Initially funded with $55 million, the latter were now worth $80 million. With a total NAV of $440 million, the family wanted to make a new acquisition and fund incremental LP investments, all while preserving their liquidity.

To achieve this, they secured a $50 million NAV loan with a loan-to-value (LTV) ratio of 11.4% and a five-year term. The loan allowed them to invest in a new operating company and make five new commitments as an LP in private equity funds. By using the NAV facility, the family office efficiently managed their liquidity without needing to sell any existing investments.

The outcome benefited both the family and the family office investment team. For the family, it eliminated the risk of under-deployment while positioning them for higher long-term returns and preserving liquidity for unforeseen needs. Meanwhile, the family office investment team enhanced their ability to pursue growth, reduced the drag from over-reserving, and improved the alignment of their capital structure with their strategic goals.

NAV Lending: A Strategic Advantage for Family Offices

NAV lending has evolved from a niche tool to a vital strategic resource for family offices navigating today’s slower private markets. When structured thoughtfully, a NAV loan enables family offices to stay fully invested, enhance liquidity, accelerate or protect long-term value, avoid forced sales, and fund growth or stabilize key assets. With more lenders participating, better pricing, and increasing adoption, NAV lending has now become an essential part of the strategic toolkit for any family office with meaningful private-market exposure.