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When you’re managing an interval fund, few metrics matter more than Net Asset Value (NAV). It’s the number that guides share pricing, redemption windows, and investor confidence. But NAV isn’t just an accounting figure, it’s a reflection of how accurately and consistently a fund’s portfolio is valued.
Net Asset Value is the per-share value of a fund, calculated by subtracting liabilities from total assets, then dividing by the number of shares outstanding. In simple terms, it tells investors what each of their shares is worth.
NAV = (Total Assets – Total Liabilities) / Shares Outstanding
NAV is typically calculated at regular intervals (monthly or quarterly) for closed-end interval funds, especially around redemption periods. But the accuracy of NAV hinges on one crucial input: the value of your underlying portfolio.
For funds that invest in private assets such as startups, private credit, real estate, valuation can be complex. Unlike public stocks, these assets aren’t priced daily by a public market. Instead, their value must be estimated using recognized valuation methodologies.
Common approaches include:
These valuations can have a material impact on NAV, especially when major events occur in your portfolio, think funding rounds, exits, or credit impairments.
NAV is more than a reporting requirement. It directly affects:
That’s why Sweater has the infrastructure to calculate NAV accurately and designed to align with SEC expectations.
We build valuation processes fund managers and investors can trust:
All valuation data is encrypted and stored with strict access controls so your NAV calculations remain both accurate and secure.
If you’ve worked in private equity or venture capital, you’re probably familiar with IRR (Internal Rate of Return) and MOIC (Multiple on Invested Capital) as standard metrics.
But here’s the thing: IRR and MOIC aren’t designed for interval funds.
Here’s why:
Instead, interval funds rely on NAV as a real-time reflection of performance supported by accurate and consistent portfolio valuations.
NAV enables fair share pricing, compliant redemptions, and investor visibility across the lifecycle of the fund.
In the interval fund model, NAV is a financial cornerstone that shapes investor trust, redemption timing, and fund growth. By partnering with a fintech platform designed for transparency, fund managers can build a more resilient fund for the long haul.
Sweater gives you the tools to build, scale, and operate an interval fund—starting with the fundamentals. Get in touch to see how we help fund managers stay accurate, compliant, and investor-ready.
