A New Definition of Leverage

The conversation around leverage has changed. In 2025, capital isn’t scarce, but confidence is. Traditional lenders continue to tread cautiously, limiting loan-to-values, tightening stress tests, and retreating from the kind of cross-border or complex structures that once defined the upper tiers of the property market. For high-net-worth borrowers and family offices, that shift has created both a challenge and an opportunity.

The challenge lies in accessing liquidity without dismantling long-term investment positions. The opportunity lies in NAV-based lending, a financial structure that turns the total value of a portfolio into a single, flexible lending base. Where traditional property loans rely on bricks and mortar, NAV lending relies on balance sheet strength. It’s an approach that’s now reshaping the private client finance landscape, giving sophisticated borrowers the ability to use their wealth strategically rather than statically.

What NAV Lending Really Means

NAV stands for Net Asset Value. At its simplest, it represents the total market value of a borrower’s assets minus any liabilities. But in practice, NAV lending is far more nuanced. It allows investors to raise capital not against individual properties, but against the collective worth of their holdings, whether that’s real estate, equity stakes, investment portfolios, or even operating companies held within a family office structure.

This portfolio-level approach means the loan is secured by the strength of the borrower’s consolidated assets, not the performance of a single one. It’s an inherently flexible mechanism that allows capital to be released quickly, discreetly, and often at lower cost than refinancing or disposing of individual assets. For many, it has become a sophisticated alternative to traditional leverage — one that preserves ownership and minimises tax exposure.

As we discussed in The Paradox of Wealth: When Value Isn’t Liquidity, even the wealthiest clients can find themselves asset-rich but cash-light. NAV-based lending exists precisely to solve that problem. It is not about debt for debt’s sake — it’s about unlocking efficiency from dormant value.

Why 2025 Has Made NAV Lending Mainstream

Just a few years ago, NAV-based lending sat at the edges of the private credit market, used primarily by hedge funds and institutional investors. That’s changed dramatically. As private banks have tightened their exposure to property and risk-weighted assets, and as family offices have accumulated ever larger, multi-asset portfolios, the demand for capital that recognises aggregate value has surged.

Private credit funds, ever opportunistic, stepped in to meet that demand. Their structures are bespoke, their underwriting flexible, and their appetite for sophisticated security — trusts, corporate vehicles, and holding entities — far greater than any mainstream lender. For borrowers who understand the mechanics of their wealth, NAV-based facilities now represent a natural extension of private banking relationships.

It’s part of the same evolution we explored in Private Credit vs. Private Banking: Choosing the Right Partner for Large Property Finance. Where private banking is relationship-driven and conservative, private credit is structural and strategic. NAV lending sits at the intersection of the two.

How the Structure Works in Practice

A NAV facility begins with a deep dive into the borrower’s portfolio. Every asset is assessed not as an isolated investment, but as a contributor to the overall value base. A family office holding £80 million in diversified assets — £50 million in property, £20 million in listed investments, and £10 million in private equity — might qualify for a facility of £25 to £35 million depending on liquidity, gearing, and diversification.

The loan itself is typically advanced at the holding-company level, secured through share pledges or trust deeds rather than individual property charges. Interest may be serviced quarterly or rolled up entirely, depending on cash flow strategy. Importantly, the facility rarely interferes with existing mortgages or project finance arrangements — it overlays them, allowing the borrower to raise capital without disturbing ongoing operations.

That makes NAV lending particularly valuable for family investment companies or developers with multiple live projects. It creates liquidity at the portfolio level, enabling capital to flow where it’s needed most — for example, bridging equity into a new acquisition, meeting a tax obligation, or capitalising on a time-sensitive opportunity.

Strategic Use Cases for Sophisticated Borrowers

For private clients, NAV lending is not about leverage — it’s about liquidity management. In today’s higher-rate environment, capital efficiency matters more than ever. Borrowers are using NAV facilities to refinance legacy loans under improved terms, fund parallel investments, or consolidate scattered borrowing across different entities.

A family office might, for instance, use NAV finance to fund a new acquisition while preserving the low-rate senior debt on its existing portfolio. A developer could deploy it to inject equity into a joint venture, avoiding dilution while keeping momentum on site. For investors with significant offshore or cross-border holdings, NAV-based lending can even act as a currency hedge, allowing capital to be accessed in sterling or euros without liquidating dollar-denominated assets.

This is the same principle that underpins other modern lending innovations like Securities-Backed Lending in 2025: The Definitive Guide for HNW Borrowers, Developers, and Advisers. Both recognise that sophisticated wealth isn’t static — it’s dynamic, and capital solutions should be too.

What Lenders Focus On

NAV-based lending relies on confidence — not in a single property, but in the system around it. Lenders scrutinise the quality of assets, the liquidity profile of the portfolio, and the transparency of governance. A well-managed holding structure with audited accounts, diversified income, and clear exit strategies is far more attractive than one concentrated in a single geography or sector.

While pricing varies, facilities typically range from 25% to 50% of total NAV, with rates reflecting risk-adjusted yields rather than standard loan margins. For example, a family office with prime London and European residential assets, minimal gearing, and verifiable income streams could expect terms closer to senior debt pricing than mezzanine. Conversely, a developer-heavy portfolio with speculative exposure might attract higher margins or lower advance rates.

Yet even at the higher end of the spectrum, NAV lending often remains cheaper and more efficient than raising new equity or restructuring multiple loans individually. Its flexibility — both in structure and purpose — is what gives it such strategic weight.

The Broader Role of Private Credit

The growth of NAV-based lending mirrors a broader rebalancing of capital. Private credit has become the quiet engine behind much of today’s property and wealth finance activity. It provides capital where banks won’t — across cross-border, high-value, and complex ownership situations.

At the same time, private credit’s professionalism has matured. Facilities are now documented with the same rigour as institutional loans, often with independent monitoring, quarterly reporting, and covenant-lite flexibility. For borrowers, that means access to sophisticated capital without the friction or formality of the public banking system.

As we saw in Refinancing High-Value Assets: Turning Illiquid Holdings into Strategic Liquidity, the ability to monetise assets without sale is now a defining feature of private wealth strategy. NAV-based lending simply takes that philosophy one step further — applying it at portfolio scale.

Why It’s Reshaping Wealth Strategy

What makes NAV-based lending so compelling is not just its efficiency, but its elegance. It allows family offices and UHNW individuals to operate like institutional investors — using the value of their holdings to finance new opportunities, diversify exposure, or manage intergenerational transitions.

For many, it also dovetails neatly with succession planning. Instead of distributing or liquidating assets to fund inheritance, a family office can secure a NAV loan, use it to meet tax or equalisation requirements, and keep the core portfolio intact. The loan is then repaid over time from income or selective disposals, preserving long-term compounding.

In this sense, NAV finance isn’t simply a product — it’s a philosophy of liquidity. It recognises that wealth creation today depends as much on flexibility as it does on ownership.

How Willow Private Finance Adds Value

At Willow Private Finance, we act as the connective tissue between borrowers and the evolving world of structured credit. Our team works with private banks, institutional lenders, and credit funds to design portfolio-level finance that reflects the full picture of our clients’ assets.

We’ve structured NAV-based facilities for family offices, investment companies, and private investors seeking to release liquidity for acquisitions, refinancing, or broader capital strategy. By combining private banking discipline with private credit innovation, we deliver solutions that are discreet, efficient, and entirely bespoke.

Our value lies not only in sourcing capital, but in structuring it. We help align facility terms with the borrower’s objectives — from covenant design to exit strategy — ensuring every layer of the balance sheet works together.

Frequently Asked Questions

What is NAV-based lending?
NAV-based lending is a form of finance that allows borrowers to raise capital against the total net value of their portfolio rather than individual properties.

Who uses it?
Predominantly family offices, investment companies, and ultra-high-net-worth individuals with diverse, income-generating assets.

How does it differ from securities-backed lending?
While securities-backed lending uses liquid investments as collateral, NAV lending leverages illiquid or mixed-asset portfolios — often including real estate.

Does it replace traditional property finance?
Not necessarily. It complements it by creating liquidity above existing mortgages, allowing investors to manage capital without refinancing property-level debt.

What’s the typical loan size and structure?
Facilities usually start around £2 million and can exceed £100 million. Loan-to-NAV ratios range from 25% to 50%, with flexible interest roll-up options.

📞 Want to Unlock Liquidity Without Selling Assets?



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We’ll help you access capital through NAV-based lending while keeping your portfolio intact.