Apollo Global Management has increased its net asset value (NAV) loan to SoftBank’s Vision Fund 2 to $5.4bn, creating the largest publicly known NAV-backed facility to date, according to a Bloomberg report.

The facility, originally structured in late 2021 and refinanced earlier this year, was upsized by $900m as institutional demand for NAV-based financing grows and Apollo strengthens its position in the space. The deal is secured against a portfolio of more than 150 tech holdings, including a $2.2bn stake in OpenAI, and represents a low-teens percentage of the fund’s total NAV.

Proceeds from the transaction are expected to be returned to Vision Fund 2 stakeholders, including SoftBank Group and founder Masayoshi Son. Apollo, which has built a strong presence in NAV lending through its insurance platform Athene, is deploying capital into investment-grade, yield-enhanced structures that align with insurer demand for high-quality, floating-rate assets.

The NAV loan carries an investment-grade rating and is held in Apollo’s insurance portfolios to meet regulatory capital requirements. The broader NAV lending market, currently valued at around $150bn, could double by 2026, according to Fund Finance Partners.

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