Fund finance platform rolls out faster NAV lending solution

The world’s first fund finance platform Bridge has launched a new software solution for the net asset value (NAV) loan market, which will allow lenders and borrowers to arrange facilities in real time.

Bridge has projected that the solution will cut costs for both parties, and will reduce the usual transaction time by six weeks.

The Sigma software connects borrowing requests and lenders in seconds, placing the counterparties into a live, single-view environment. Borrowers can manage the deal process on one screen where all parties can communicate and refine terms directly. Meanwhile, lenders can benefit from an informed client relationship origination engine.

“Despite surging demand for NAV loans, borrowers and lenders are often hamstrung by cumbersome, manual processes for arranging facilities,” said Andrew Frazer Smith, founder of Bridge.

“We’re in a digital age, but the market still relies on analogue systems. Securely tech-enabling our clients to expedite the process will help free up capital, meaning it can be invested by funds faster so that returns are enjoyed sooner by both parties.”

NAV loans have a projected compound annual growth rate between 2022 and 2030 of 30 per cent. Bridge said that this market represents a natural expansion for the firm, which already has GPs with a combined $1.1tn (£0.87tn) assets under management signed up to its sub-line capability.

“Bridge has quickly grown in the sub-line market since it was launched in November 2023,” added Frazer Smith.

“Expanding into NAV, which represents a significant chunk of the capital invested by alternative investment funds, and an increasingly important liquidity tool for all parties, was a logical next step.

“We’ve already got some of the market’s biggest borrowers and lenders using our software for sub-lines, so we are looking forward to working with all types of lenders and fund finance borrowers from across the global NAV landscape.”