Fadi Samman Quoted by PEI on Recallable NAV Loan Trend
Contact:
Akin investment management partner Fadi Samman was quoted by Private Equity International for its article “Recallable NAV loans: The ‘zero-sum game’ leaving LPs in a bind.” The article considers the growth of NAV loans, now a widely adopted form of fund finance, sometimes used to accelerate distributions and deliver cash back to LPs or invest further in existing portfolios.
Fadi, considering to what extent recallable NAV loans are standard market practice, said, “Typically, most fund documents have some provision that says a certain amount of disposition proceeds are recallable, subject to certain limitations, amounts, time periods and other things, and often a refinancing of an investment is deemed to be a disposition.”
The full article can be read here.
