Non-bank lenders are charging increasingly higher margins on complex net asset value (NAV) facilities despite wider pricing compression across the fund finance market, according to a new report from Corpay Private Markets.

The fifth edition of the firm’s Lender Book Report found that average non-bank NAV lending margins widened from 756 basis points in February 2025 to 794 basis points in August 2026. By contrast, average bank NAV margins narrowed from 447 to 435 basis points over the same period.

This comes as the fund finance lender base continues to diversify, with alternative credit providers accounting for around 30 per cent of lenders tracked by Corpay’s Alpha Match platform, up from roughly 25 per cent three years ago.

The total number of lenders tracked by the platform has increased by around two thirds since its launch in 2023.

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While competition has driven down subscription line margins across both banks and non-bank lenders, the report found that alternative lenders have increasingly targeted more complex NAV transactions, where they can command higher pricing.

However, Corpay said its data is weighted towards mid-market and more complex NAV facilities, rather than the largest and most competitive transactions.

It said the findings do not necessarily indicate rising non-bank NAV pricing across the entire market, with alternative lenders reportedly offering more competitive pricing on larger deals.

The report also suggested that lower interest rates could be contributing to wider non-bank margins, as lenders seeking absolute returns require higher spreads to offset lower base rates.

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“The headline story of fund finance in 2026 is price compression. A more diverse, more crowded lender base has pushed pricing down across the board, especially for subscription lines; more lenders competing for the same deals has meant tighter margins for banks and non-banks alike,” said Ed Beecham, head of origination, fund finance at Corpay Private Markets.

“But the same is not true for NAV facilities. As non-bank lenders have entered that market in growing numbers, rather than competing on pricing, they have moved into underserved pockets higher up the risk curve as a means of widening margins.”