Ares is among the first to bring net asset value financing to the region, after handing Dubai-based multi-family office Patrimium a USD 100 mn facility in a move that allows it to tap liquidity without disrupting existing portfolios, Bloomberg reports. The facility is backed by a portfolio of Patrimium’s private-market investments and will support the firm’s broader capital planning strategy.

SOUND SMART- NAV financing allows investment firms and family offices like Patrimium to raise capital by pledging their portfolio of underlying assets as collateral. This unlocks liquidity without selling assets at a markdown or relying on an unpredictable IPO window to finance new investments.

Why it matters: The transaction is one of the first major instances of a global alternative investment firm using asset-backed lending to provide liquidity to a regional private wealth vehicle. It signals the regional introduction of a tool to boost capital efficiency at a time of constrained exits, as regional banks tend to focus on state-led infrastructure and giga-projects, leaving private wealth managers and mid-market firms increasingly underserved.

While NAV financing is still a niche product, global investors are banking on it, and that includes Gulf sovereign wealth funds. An Abu Dhabi Investment Authority subsidiary served as anchor investor for Pemberton Asset Management’s NAV financing strategy.

Background

Ares’ ties with the UAE run deep: Ares Management, through its credit funds, provided Property Finder with a USD 250 mn loan to support its expansion across the GCC in October. It also partnered with Mubadala Investment Company and Aldar Properties back in 2023 to set up a USD 1 bn private real estate fund targeting the UK and Europe.

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