A stagnant M&A market, valuation mismatch, and longer holding periods for private equity GPs. “There are a number of funds who are fully deployed and still need liquidity to support their investments, because market conditions may mean it's not the best time to be disposing of those right now,” Ed Saunders, partner at Goodwin, said. “For lenders, it means there are a number of funds out there with strong and diverse portfolios. That's an attractive proposition for a NAV lender.” Saunders said they have had questions around what might happen to the growth of NAV financing once the M&A market unlocks. However, he thinks the growth opportunities will persist. “There are many managers out there who are now looking at NAV as a serious liquidity tool in the ordinary course. NAV financing is not just about a locked-up M&A market, their treasury functions mean there are other good use cases for them, so we think there remains a lot of untapped potential.” Please read the 9fin article for more.