Investing
High alert: Why the latest private equity innovation is worrying central bankers
Nav-financing is growing rapidly in the private equity market, but regulators are watching closely
As British regulators get increasingly agitated about banks' exposure to private equity risks, one blind spot is generating particular unease.
Net asset value (Nav) financing is far from a new innovation, but in private equity circles it is increasingly a booming market - one estimate suggests it could grow to $700 billion over the next five years.
Essentially a loan from a bank secured against an asset portfolio, the rapid growth is worrying officials at ...
