NAV-Based Facilities for Family Offices: Financing Private Equity Portfolios at 30 Percent LTV

Family offices that have built substantial private equity portfolios hold considerable value in their fund interests, but that value is illiquid, locked in funds that distribute over years. Net-asset-value (NAV) based facilities release liquidity against the portfolio as a whole, lending at a conservative loan-to-value (LTV) against the aggregate value of the fund interests, without requiring the family office to sell them. This paper examines NAV-based facilities for Gulf Cooperation Council (GCC) family offices. Using an indicative dataset calibrated to 2026 conditions, it sets out the structure of these facilities, the conservative LTV they employ, the uses to which the released liquidity is put, and the protections lenders require. It develops a framework for when a family office should use a NAV facility, compares it with the alternative of selling fund interests in the secondary market, examines the lender perspective, and addresses the risks. The analysis finds that NAV facilities release liquidity at a far lower cost than selling fund interests at a secondary discount, that the conservative LTV provides a comfortable cushion against a decline in the portfolio value, and that the facilities are a valuable liquidity and portfolio-management tool for family offices with substantial private equity portfolios. Three indicative case studies, a sensitivity analysis, an international comparison and an implementation roadmap support the analysis, which is intended for GCC family offices managing private equity portfolios.