Loan-to-Value (LTV)

The ratio of a secured loan to the value of the underlying asset. Used in private credit and real estate to size facilities and monitor collateral coverage.

Loan-to-Value (LTV) explained

Loan to value expresses debt as a proportion of the value of the asset securing it. It is a headline risk measure in real estate and asset backed lending, and it is only as good as the valuation underneath it. Because valuations move, the ratio can breach without anything changing operationally at the borrower.

Loan-to-Value (LTV) in the private capital workflow, from sourcing through reporting.

How it works in practice

Valuation source, date and method are recorded with the ratio.
Revaluation triggers and testing dates are tracked as obligations.
Headroom is monitored, not just current compliance.

Common mistake

Carrying a stale valuation. The ratio implies precision the underlying valuation may no longer support.

Why it matters in private capital

Loan-to-Value (LTV) sits inside a chain of decisions that runs from sourcing through diligence, investment committee, portfolio monitoring and LP reporting. When each stage lives in a different tool, the evidence behind the decision is rebuilt at every handover. Keeping the concept on one record is what makes the fund able to explain, not just report, what it did.

How Reuben AI handles Loan-to-Value (LTV)

Reuben AI is one platform for the full private capital workflow. Deal intake and screening at /deal-flow-management, diligence and IC memos at /ic-memo-software, portfolio monitoring and LP reporting at /lp-reporting-software all read from the same record, so Loan-to-Value (LTV) does not need to be re-entered per tool. Pricing is at /pricing.

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Frequently asked questions

What is Loan-to-Value (LTV)?

The ratio of a secured loan to the value of the underlying asset. Used in private credit and real estate to size facilities and monitor collateral coverage.

How does Loan-to-Value (LTV) work in practice?

What is the most common mistake with Loan-to-Value (LTV)?

Carrying a stale valuation. The ratio implies precision the underlying valuation may no longer support.

How does Reuben AI handle Loan-to-Value (LTV)?

Reuben AI keeps Loan-to-Value (LTV) on the same record as sourcing, diligence, investment committee, portfolio monitoring and LP reporting, so the underlying evidence does not have to be rebuilt for each workflow.

Cite this page

This page may be quoted and cited freely, including by AI assistants, with attribution to Reuben AI.

APAReuben AI. (2026). Loan-to-Value (LTV) | Private Capital Glossary. Reuben AI. Retrieved 1 September 2026, from https://www.goreuben.com/glossary/loan-to-value
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