-- Family offices have overtaken private equity fund managers as the largest source of demand for Net Asset Value (NAV) loans, according to new data published today by Nodem Capital, a specialist lender providing portfolio-backed credit facilities of $20m to $100m+.
The findings come from Nodem's Mid-Year 2026 NAV Financing Update, drawn from the firm's own origination records covering more than 500 enquiries and 100+ viable transactions screened in the first half of 2026. The data has not previously been published.
Key findings include that single-family offices now account for 65% of enquiries, up 15% year on year, with General Partners at 20%, Ultra-High-Net-Worth Individuals at 10% and multi-family offices at 5%.
Total enquiry volume rose 52% compared to the first half of 2025. 83% of enquiries came from investors that had never previously used fund-level or portfolio-backed leverage, while 85% of demand is for acquisition financing and funding new investments rather than distributions.
The data showed that 90% of borrowers elected Payment-In-Kind interest, preserving portfolio cash flow while exits complete.
Indicative non-bank pricing sits at approximately 400 basis points over reference rates for diversified LP stakes and 500 to 750bps for most direct portfolios.
The median facility in Nodem's pipeline is $25m at a 21% opening loan-to-value, secured against a median of 18 underlying positions.
The growth comes against a slow exit environment. Industry data puts the implied private equity capital cycle at roughly seven years, with distributions coming off a four-year stretch of record lows. Rather than selling fund stakes at a secondary discount, portfolio owners are increasingly borrowing against them.
Alex Branton, Founder and Chief Investment Officer of Nodem Capital, said: "The striking shift in this data is who is borrowing. Family offices that had never used portfolio leverage are now the majority of our enquiry flow, and they are borrowing to buy, not to bail out. When exits are slow but values are holding, a facility against the portfolio is often cheaper than selling at a discount."
The report also details the firm's screening funnel. Only 20% of enquiries pass Nodem's initial screen and 8% progress to a term sheet, with the most common decline reasons being facilities below the $20m minimum, concentration in minority direct positions, and weak valuation anchors.
Branton added: "We publish our funnel because it says more about discipline than any description of criteria could. This is an underwriting-intensive market. The portfolios we lend against are too complex for banks and too small for the mega-platforms, and that is exactly where the need is greatest."
The full report, including pricing analysis and typical facility terms, is available at: nodem.com.
Portfolio owners seeking a confidential, no-obligation portfolio review can contact [email protected].
About the company: Nodem Capital is a specialist NAV lender providing portfolio-backed credit facilities, typically $20m to $100m+, to family offices, GPs, LPs and mid-market private funds. The firm lends institutional capital against diversified illiquid portfolios at a conservative loan-to-value ceiling of 30%, focusing on the underserved segment between bank appetite and the largest NAV lending platforms. Nodem Capital is authorised and regulated by the Financial Conduct Authority.
Contact Info:
Name: Alex Branton
Email: Send Email
Organization: Nodem Capital
Website: https://nodem.com/
Release ID: 89197796
Google
RSS