NAV Facility providers can offer limited interest rate and foreign exchange hedging tools within their loans directly.  Like standard hedging routes involving third-party hedging banks, these risk solutions decrease loan-level risk and may be integral to both parties' investment thesis.  But when integrated into a NAV Facility itself, they can vastly reduce hedging burdens and implementation timelines.

HedgeNAV develops and implements ways for NAV-based lenders of all sizes to provide simple-but-effective hedging solutions for their borrowers.  A key feature is that they do not rely on credit from or share security with hedging banks.  Instead, they are funded by affiliates of the managers' lending entities or by a separate entity managed by HedgeNAV.