Pryor Cashman Partner Lawrence Remmel, chair of the Banking + Finance Practice and a member of the Corporate Group and Investment Management Practice, spoke with Private Debt Investor about net asset value (NAV) borrowing and the risks to funds that use NAV for financing.

In "NAV finance: 'A huge and growing area,'" Larry notes that:

...the risk that funds that engage in NAV borrowing will have to redo their valuations is very low. Banks provide a good check on the funds, with any downside risk reflected in their initial valuations and the borrowing base provided, he says. Remmel does not expect a wholesale repricing of these loans. "When they're under stress, they will be seen to be conservative."

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