This website uses cookies. By using this website, you agree to our Cookie Policy.
January 09, 2025
Cadwalader counsel Bryan Barreras spoke with Bloomberg Law about the risk levels in NAV Loans in an article, "Private Equity Hits the Brakes on Riskiest Types of NAV Loans."
The article explores evolving trends in NAV loans, including their shifting use from funding distributions to reinvesting in portfolio companies. Addressing concerns about the perceived risks of these loans, Bryan offered a key perspective: the debt is less risky than many people think because loans are backed by collateral usually three times more than their value.
The piece also highlights industry-wide discussions about transparency and investor confidence in NAV loan structures.
Read the full article here. (subscription required)
