Pemberton confirms first close at over $1bn for NAV financing fund

Pemberton Asset Management has confirmed that the first close of its new net asset value (NAV) financing fund has raised over $1bn (£790m).

The European private credit manager’s NAV Strategic Financing Strategy was first unveiled last month. It provides finance to private equity firms, against the value of their investment portfolios.

A subsidiary of the Abu Dhabi Investment Authority is an anchor investor, alongside Legal & General and other institutions.

“Further to announcing ADIA’s anchor investment in June, this represents a significant first close for the Strategy,” said Thomas Doyle, partner and head of strategic financing at Pemberton.

“NAV financing is a credible and worthy financing option that can bring benefits to investors, private equity firms and the portfolio companies that all form part of this robust and active market. This milestone represents the growing attractiveness of the asset class and is a testament to the team.”

Read more: BoE sounds the alarm on NAV financing

NAV financing is growing in popularity, as a way of boosting liquidity within private markets.

Recent research from Oaktree Capital Management and 17Capital has suggested that the NAV finance market could reach $145bn by 2030 and will play a “major role” in the evolution of financial markets.

Several fund managers have set up NAV financing strategies of late, including Axa Investment Management and AllianceBernstein.