Non-bank NAV lending margins widen to 794 bps

Non-bank lenders charged an average 794 basis points on NAV facilities in August 2026, up from 756 bps in February 2025, according to the fifth Lender Book Report from Corpay Private Markets. Bank NAV margins narrowed to 435 bps from 447 over the same period.

Subscription line margins compressed for banks and non-banks as more lenders chased the same deals, while non-bank lenders shifted into more complex NAV transactions, according to the report.

For a fund choosing between bank and non-bank execution, the 359-basis-point gap means each $100 million drawn at the non-bank average costs $3.59 million a year more.

Alternative credit providers now account for around 30% of lenders tracked on Corpay's Alpha Match platform, up from roughly 25% three years earlier. The platform's total lender count has grown by about two thirds since its 2023 launch.

Corpay said its data is weighted toward mid-market and more complex NAV facilities rather than the largest, most competitive transactions. It said the findings do not necessarily indicate rising non-bank NAV pricing across the whole market, and alternative lenders reportedly offer more competitive pricing on larger deals.

Lower interest rates could be contributing to wider non-bank margins, as lenders seeking absolute returns require higher spreads to offset lower base rates, the report said. "The headline story of fund finance in 2026 is price compression," said Ed Beecham, head of origination, fund finance at Corpay Private Markets. "As non-bank lenders have entered that market in growing numbers, rather than competing on pricing, they have moved into underserved pockets higher up the risk curve as a means of widening margins."

The bank side narrowed 12 basis points over the 18 months the report covers.