How to Track a NAV Facility as an LP (Asset-Backed)

How to track a NAV facility as an LP is the asset-backed facility ledger you keep after the fund, or a borrowing subsidiary, draws against portfolio value, not against uncalled capital. Raziel's subscription line tracking page is the capital-call line backed by unfunded commitments. This page is six fields: facility size, outstanding, borrowing base or NAV, maturity, cash versus recycled proceeds, and Net IRR with and without the facility if the pack shows it.

This is not legal, tax, or investment advice. Raziel does not provide it. Copy the ILPA NAV-facility disclosures and the latest pack. Do not invent a loan-to-value cap or a facility rate.

NAV facility is asset-backed. A subscription line is not

ILPA's July 2024 NAV-Based Facilities guidance: NAV-based facilities are credit facilities backed by the value of the fund's investments. Subscription lines are backed by undrawn LP commitments. Dechert (August 31, 2024): a sub-line borrows against future capital contributions; a NAV facility is secured by assets the fund already holds. ILPA: these facilities are generally used after remaining commitments have been drawn, after the investment period or early in harvest. A hybrid can exist. Keep two rows. Copy the facility you actually have.

Six columns on one fund row

Open one row per fund per as-of date. Do not collapse two vehicles that share a GP brand. ILPA's Part 5 template asks GPs to give every LP a standardized disclosure once a NAV-based facility is in place. Copy what the GP printed. If a field is missing, store that it was missing.

• Facility size. Overall size of the facility. Name the borrower (the fund or a borrowing subsidiary). You are not the borrower. ILPA: this is fund-level leverage, even when an SPV sits below the fund.

• Outstanding. Amount borrowed to date. Size is capacity. Outstanding is the drawn balance as of the statement date, not your last wire.

• Borrowing base or NAV. ILPA: the borrowing base is calculated by the net asset value of fund interests or portfolio companies. Copy the printed NAV, borrowing base, and initial LTV if present. Do not paste a market LTV.

• Maturity. Term end date, including any extensions. Copy the date. Do not invent a tenor.

• Cash versus recycled proceeds. Use of proceeds from the pack: distribution to LPs, portfolio support, follow-on, or repayment of other borrowings. Cash left to LPs. Recycled proceeds stayed in the fund, or came back as recallable.

• Net IRR with and without, if the pack shows it. Store the pair and the methodology only when printed. If the pack is silent, store that it was missing. Do not invent an unlevered IRR.

Borrowing base is portfolio NAV, not uncalled capital

Dechert: accurate and regular valuation of the fund's assets determines the borrowing base. ILPA: if the facility exceeds the specified loan-to-value ratio, terms may require repayment or a cash sweep. Copy the printed borrowing base and any printed LTV. Leave the rate blank unless the pack prints it.

Cash to you is not recycled proceeds

Tag the row from the GP's rationale. Support and follow-on are recycled into assets. A distribution is cash, and ILPA warns it is often recallable. Recalled cash is not a realization. Do not book a facility-funded distribution as DPI from an exit.

Net IRR pair only if the pack shows it

ILPA's June 2020 subscription-line guidance asks, each quarter, for Net IRR with and without the use of the facility, and says there is no universally accepted method. ILPA's 2024 paper quotes the Model LPA clause that already wants that pair for any Credit Facility. Copy it when the pack shows it. Feed dated cash to an IRR calculator only after you know which dollars were facility-funded distributions, which were realizations, and which never left because they were recycled.

When the ledger holds

The row holds if facility size and outstanding are dated, borrowing base or NAV is copied from the pack, maturity is the printed term end, cash versus recycled proceeds follows the stated use of proceeds, and the Net IRR pair is stored only when printed. It fails when you treat the NAV facility as a subscription line, paste a loan-to-value cap, book a recallable facility distribution as exit DPI, or skip the row because no new wire has left. Raziel's alternative-asset dashboard is the investment record those rows can sit on: cash dates, documents, IRR and MOIC, AI ingest of the pack, capital calls, wallets and bank linking. Raziel does not run the facility and does not give investment advice. Copy the six columns. Leave the math to the agreement and the notice.