Wealthy individuals and family offices are increasingly borrowing against their private equity holdings to offset a four-year dealmaking downturn that has squeezed payouts from buyout funds. Net asset value (NAV) lending, previously used by institutions, is now being adopted by rich people seeking liquidity while their investments remain locked up. Buyout funds have returned far less cash to backers over the past four years due to sluggish dealmaking, leaving pension funds, executives, and individuals searching for other sources of liquidity.

Ben Williams of Goldman Sachs noted clients are "less tolerant" of assets not deriving value. Family offices allocated 20 percent of assets to private equity and private debt in 2025, up from 16 percent in 2019. "You want to have at least the opportunity to sweat as many of your assets as you can in a risk-efficient way," Williams added. NAV loans offer an alternative to selling stakes in the secondary market, where deals usually occur at a discount.

By borrowing against holding value, investors can realise cash without crystallising a loss, with the total NAV lending market around $150 billion and average deal sizes of $150 million. While initially a niche tool, NAV financing has become a recognised category for individuals. Goldman Sachs typically lends 25 to 35 percent of asset value for NAV loans, well below the 40 to 60 percent offered for art loans, with terms of two to three years commonly renewed.