Private Credit: NAV Loans Evolve as Product Goes Mainstream

Record KBRA-rated net asset value (NAV) issuance in 2025, followed by continued deal activity in 2026, underscores the evolution of NAV lending from a niche liquidity tool into an established component of fund finance. Broader sponsor and lender adoption has supported standardization, expanded market participation, and encouraged new structures that continue to adapt to shifting general partner (GP) needs while preserving credit discipline.

KBRA NAV loan ratings have remained broadly stable since our prior NAV report (see Private Credit: NAVigating the PE Landscape—NAV Loans Still Perform), despite extended hold periods and weaker asset mixes in certain older-vintage private equity (PE) funds. Of the 279 KBRA surveillance reviews of PE and secondary NAV loans from 2020 through 1H 2026, 95% of rating actions were affirmations and 4% were…