In a mutual fund, NAV is simple: market price of stocks / units. In an AIF, NAV is an estimate. Since private assets don’t trade daily, the NAV is derived from periodic valuations.
Investors should view AIF NAVs as “directional indicators” rather than precise cash values. The true value is only known when the asset is sold. Don’t obsess over quarterly NAV fluctuations; focus on the operational health of the underlying businesses.
