Net Asset Value (NAV) - Private Equity Glossary | LP Data

Net Asset Value (NAV) represents the current estimated fair market value of a fund's portfolio holdings. It's the unrealized portion of a fund's value that appears in TVPI but not in DPI.

How NAV is determined

GP provides quarterly valuations
Based on comparable transactions, multiples, or other methods
Audited annually by independent auditors
Subject to GAAP fair value accounting standards

Limitations

GP discretion in valuation methodology
May lag market reality during rapid changes
Not guaranteed to be realized at liquidation

Why NAV matters

NAV plus cumulative distributions equals total value created. However, unrealized NAV is "paper" value until actually distributed.