What is NAV lending for litigation funders?
NAV lending is a facility secured by the net asset value of a litigation funder’s portfolio rather than by any single case. The lender advances a percentage of the portfolio’s assessed value and is repaid as matters resolve. It gives a funder liquidity without selling positions or raising a new fund.
How the portfolio is valued. Each matter is priced on probability, expected recovery and duration; the portfolio value is the sum of those positions, discounted for concentration and time. A lender that prices from the court record can advance against a book with more confidence than one working from the manager’s marks.
What it is used for. Bridging capital calls, funding new matters while existing ones resolve, returning capital to investors ahead of resolutions, or smoothing a fund’s cash profile.
Alongside NAV lending. Warehouse facilities for originators building a book; co-investment on specific matters; LP access for managers raising a vehicle.
Criterica Capital prepares requests for all four, evaluated from the court record, for consideration by independent capital providers.
Common questions
Does the funder keep control of its cases?
Yes.
What does the lender need?
A tape of the portfolio and the fund’s documents.
How is the book monitored?
Through re-scoring as events arrive, reported to the lender and the manager alike.
Ready to take the next step?