Investec, SVB provide £50m NAV facility to Draper Esprit

The loan has a three-year term and carries an interest rate at the Bank of England base rate +6.75% (minimum of 7.5% in total). It is secured against the underlying net asset value of the fund.

There are no restrictions on how Draper Esprit uses the facility, but it is expected to be used primarily for new investments.

Investec's head of UK fund finance Matthew Hansford told Unquote that the facility improves the cost of funding across the business.

Hansford added that NAV financing represents a credit-based alternative to some of the GP-led secondaries transactions that have been used to solve portfolio liquidity problems by some private equity firms in recent years.

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• Topics
• GPs
• Financing
• Draper Esprit
• Investec
• Silicon Valley Bank (SVB)