What is NAV financing private equity?

Could you please explain in detail what NAV financing private equity entails? How does it differ from traditional methods of financing private equity investments? What are the potential benefits and risks associated with this type of financing? How does it impact the returns for investors, and what role does the net asset value play in determining the terms of the financing? Is it suitable for all types of private equity investments, or are there certain types that are better suited to NAV financing?