Private markets were built around illiquidity. Investors commit capital, managers invest it over time, and cash comes back when assets are sold. But as private equity, private credit and private markets have scaled, the industry has had to build a more sophisticated liquidity toolkit. In this episode of Private Markets Podcast, Fund Shack, Ross Butler speaks with Alex Branton, Chief Investment Officer at Nodem Capital, about what NAV really means, how NAV lending works, and why secondaries, continuation vehicles, structured secondaries and evergreen funds are becoming central to private markets. Alex explains how NAV lending sits on a spectrum. At low loan-to-value ratios, it looks like conservative credit. At higher LTVs, it begins to resemble preferred equity or structured secondaries, where the lender takes more equity-like risk and future upside is shared. The episode explores why NAV loans are controversial. They can fund an accretive acquisition, support a strong portfolio company or buy a discounted secondary position. But they can also accelerate DPI or distribute cash when the underlying assets may not be ready for exit. The structure is not the issue. The motivation is. Ross and Alex also discuss the robustness of NAV itself. NAV is not cash in the bank. It is a manager mark, shaped by comparable multiples, valuation policy, auditor review and GP judgement. For NAV loans, secondaries and evergreen funds, NAV matters because it is the reference point for buying, selling, lending and redeeming. The conversation then turns to evergreen funds and private wealth access. Alex is positive about evergreen vehicles, but warns that implied liquidity creates a challenge. Investors need to understand how NAV is constructed, how redemptions work and what happens when negative headlines trigger outflows. The episode finishes with private credit, software exposure, defaults and recent market anxiety. Alex argues that the market should distinguish between genuine credit risk and liquidity pressure inside fund structures. His view is that private credit headlines are often overstated, but underwriting standards, leverage, amend-and-extend behaviour and smaller-market lending should still be watched carefully. Topics covered include: 🔹What NAV really means in private markets 🔹How NAV lending works 🔹 LP-led and GP-led secondaries 🔹Continuation vehicles and strip sales 🔹Structured secondaries and preferred equity 🔹Loan-to-value, downside protection and equity risk 🔹DPI acceleration versus accretive NAV loan use cases 🔹Why NAV lending is controversial 🔹LPAC governance and investor alignment 🔹 Why NAV is not the same as cash 🔹 Secondary market pricing and bid-ask spreads 🔹Evergreen funds and private wealth access 🔹 NAV squeezing, or NAV stretching 🔹Private credit risk, SaaS exposure and default rates 🔹Why fund structure matters as much as asset quality This episode is essential listening for GPs, LPs, private credit investors, secondaries specialists, family offices, wealth advisers and anyone trying to understand how liquidity, valuation and alignment are changing across private markets. Guest: Alex Branton, Chief Investment Officer, Nodem Capital 🔗 https://www.linkedin.com/in/alex-branton-b6130a27/ Host: Ross Butler, Fund Shack 🔗 https://www.linkedin.com/in/rossbutler1/
