TR Capital weighs NAV financing deals in India

Concept of NAV financing is new in Asia but common in the US, Europe

Secondaries private equity (PE) firm TR Capital is evaluating NAV financing deals in India to lend to other funds through preferred liquidity, top executives said.

"It is the second activity (of TR Capital); it is a separate fund with a dedicated team, where we provide financing to PE or venture capital firms that have matured," said.

Paul Robine, founder and chief executive of the Hong Kong-based firm. "It demonstrates maturation in the PE industry (in the region)." Funds can use NAV financing, which is based on the net asset value of their portfolio of investments, to provide liquidity to investors through structured solutions such as debt and preferred equity. This allows PE firms to make follow-on investments or accelerate distribution to their limited partners (LPS), even if they do not have capital available in liquid form when needed.

Managing partner Emma Wang leads the NAV financing vertical at TR Capital.