---
title: "NAV (Net Asset Value) | Altss Glossary"
description: "NAV is the value of a fund’s assets minus liabilities, typically reported as a total and per unit/share amount."
canonical: "https://altss.com/glossary/nav"
---

Fund Metrics

# NAV (Net Asset Value)

Publisher: Altss LLCPublished 2025-12-29Content modified 2026-01-06

NAV is the value of a fund’s assets minus liabilities, typically reported as a total and per unit/share amount.

**Allocator relevance:** **A core monitoring metric—NAV quality depends on valuation policy, data accuracy, and reporting integrity.**

### Expanded Definition

NAV is used to measure portfolio value, performance, and investor ownership. In private markets, NAV is based on valuation marks that can be lagged and judgment-based, making NAV sensitive to valuation policy and governance. In hedge funds and open-end vehicles, NAV is often calculated more frequently with more observable pricing inputs.

Allocators focus on consistency, transparency, and auditability of NAV—especially when NAV drives fees, redemptions, or performance reporting.

### How It Works in Practice

Fund administrators compute NAV using portfolio valuations, accounting for fees, expenses, leverage, and liabilities. NAV is reported in periodic statements and used to calculate investor shares and performance.

### Decision Authority and Governance

Governance includes valuation committee oversight, audit processes, and LPAC review where conflicts or subjective marks arise. Clear valuation policy reduces disputes.

### Common Misconceptions

- NAV is always “objective market value.”

- NAV updates mean liquidity.

- NAV is comparable across strategies without context.

### Key Takeaways

- NAV reliability depends on valuation policy and controls.

- NAV is essential but not self-explanatory.

- Treat NAV with appropriate confidence based on asset type.

## Related terms

[DPI (Distributed to Paid-In)](https://altss.com/glossary/dpi)[IRR (Internal Rate of Return)](https://altss.com/glossary/irr)[Valuation Policy](https://altss.com/glossary/valuation-policy)[Audit](https://altss.com/glossary/audit)

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## Canonical URL

https://altss.com/glossary/nav