Term: Net Asset Value (NAV)

The estimated value of an investment firm’s assets. The value of a private equity fund or a partial interest in the private equity fund is expressed as NAV and if such a fund or fund interest is sold in a secondary transaction the value agreed upon is expressed as the extent to which it was a discount to NAV or a premium to NAV. As in: I sold my interest in that fund at a 7% discount to NAV.

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