Developmental guidance
29.07.2024 – Articles
ILPA’s much anticipated NAV facility guidance has arrived but, with signs the industry is already regulating itself, how necessary are the recommendations?
ILPA has published its long-awaited guidance on NAV facilities.
Originally slated to be released in May this year, the trade body’s best practice publication comes as managers drastically reduce the practice of using these loans to pay dividends.
According to an FT article, published in mid-July, citing 17Capital, use of NAV loans to provide distributions to LPs fell by 90% in the second half of 2023.
Furthermore, despite the headlines and noise around NAV facilities, take-up of these loans has been relatively low.