Adia backs Pemberton’s NAV financing fund: An Abu Dhabi Investment Authority (ADIA) wholly-owned subsidiary will serve as anchor investor for European private credit manager Pemberton Asset Management’s new NAV strategic financing strategy, according to a statement. The exact size of the investment was not disclosed, but is expected to edge the strategy’s first close to over USD 1 bn, alongside commitments from other undisclosed investors.

Uh, Enterprise, what’s NAV financing? NAV loans — which leverage investment portfolios to access financing — are a non-dilutive tool that can boost liquidity for an illiquid fund, especially at later stages in its cycle. This form of financing is becoming increasingly popular among private equity players as traditional forms of capital-raising become harder to access.

About the strategy: The strategy offers net asset value financing and capital for private equity general partners (GPs) and funds, with a focus on backing fund commitments, succession planning, strategic initiatives, and portfolio company investments, including bolt-on acquisitions.

What they said: “NAV financing is one of the fastest growing asset classes in private credit, and we are confident Pemberton’s new strategy will prove attractive to a broad range of GPs,” ADIA private equities department’s executive director, Hamad Shahwan Aldhaheri, said.

ADIA ❤️ private credit: ADIA recently poured USD 1 bn into Barclays and AGL Credit Management’s new private credit fund, and ramped up its commitment to London-based alternative asset manager Cheyne Capital’s capital solutions strategy to GBP 650 mn. The state investor previously ventured into private credit in September, backing a USD 5 bn fund launched by Wells Fargo alongside asset manager Centerbridge and making a USD 932 mn investment in Australian real estate private credit company Qualitas Diversified Credit Investments.

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