Specialist debt financing for secondary transactions
Ardian NAV Financing is a platform providing debt facilities backed by large portfolios of private equity and infrastructure funds. These transactions are typically sponsored by funds-of-funds players who acquire the portfolios on the secondary market.
Between 2018 and 2022, Ardian NAV Financing deployed over $3bn to support acquisitions or recapitalizations of secondary portfolios. Ardian NAV Financing works in partnership with arranging banks and takes exposures between $100m and $500m+ in facilities of between $200m and $1bn+. Ardian NAV financing is independent from Ardian Secondaries & Primaries, however the team benefits from Ardian’s institutional experience over more than 20 years of Secondaries investing.
deployed over the first four years
expected annual deployment in the coming years
covered in NAV Financing database
A low-risk yield strategy
Ardian NAV Financing finances transactions secured against mature and diversified portfolios of private equity and infrastructure fund interests. Risk is assessed in detail ahead of each transaction and monitored throughout its life, thanks to Ardian’s proprietary database, which provides excellent insight into the performance and future liquidity of the underlying assets.
A high level of capital at work
Because the portfolios are mature, turnover is high, which means that capital can be recycled quickly which enhances returns. Strong deal flow allows the team to maintain a high level of capital at work, maximizing the yield on investors’ committed capital: Ardian NAV Financing’s first platform of $2.3bn has been fully invested in three years, despite the impact of the COVID-19 pandemic. Thanks to recycling it was able to deploy over $3bn so far.
Growing secondary market boosts demand
The deal flow available to Ardian NAV Financing is growing thanks to the increasing number of large secondary deals and recapitalization opportunities for mature secondaries platforms. As evidenced by the growth in AUM of Ardian Secondaries & Primaries, the largest secondary player in the world, the secondary market is growing and in 2021 deal volume exceeded $100bn for the first time. Even so, the vast majority of Ardian NAV Financing’s addressable market is still untapped, providing ample room for continued growth.
The Ardian NAV Financing team comprises three people based in London and Paris.
"The secondary market for private equity and infrastructure funds is growing quickly and already represents an opportunity worth tens of billions of dollars a year."