Fund Structure
What is NAV (Net Asset Value)?
Net asset value (NAV) is the total value of a fund's assets minus its liabilities, representing the current estimated worth of LP interests. In private funds, NAV is typically reported quarterly based on manager valuations.
NAV represents the current marked value of a fund's holdings. Unlike public funds where NAV reflects daily market prices, private fund NAV is based on the GP's quarterly or annual fair-value estimates of each portfolio company, reviewed or audited annually.
LP ownership is expressed as a percentage of fund NAV. The residual value to paid-in capital ratio (RVPI) — unrealized NAV divided by paid-in capital — shows how much of a fund's reported value remains unrealized.
Also known as: net asset value
Related Terms