17Capital has closed its third fund on 500 million euros, beating its 450 million euros target. 17 Capital provides equity to limited partners looking for early liquidity without the need to sell on the secondary market and to general partners who need capital for new or follow-on investments.
17Capital, the London-based specialist preferred equity investor in private equity funds, announces the successful closing of its third fund in December 2014 with commitments of €500 million. The Fund closed just a few months after being launched in the summer, and exceeded the targeted fund size of €450 million.
Investors include international institutions – pension funds, insurance companies, sovereign wealth funds, university endowments and large family offices. 95% of 17Capital’s investors from previous funds participated in this new fund. Based mostly in the UK, France and Canada, they were notably joined by a number of German investors for this opportunity.
Managing Partner Pierre-Antoine de Selancy said: “We are delighted with the demand for 17Capital Fund 3. We believe our product is both proven and distinctive, offering our investors a unique risk-return profile, and possibly the most dynamic investment and exit pace of the private equity industry. We are thankful to both existing and new investors for their strong support, and look forward to continuing to work with them over the coming years.”
17Capital Fund 3 closed only two years after the successful final closing of 17Capital Fund 2 (2012 – €208 million), which has invested in a number of highly-attractive European and global private equity funds. The first exits have already taken place and over a third of this fund has been sent back to its investors. 17Capital Fund 1 (2010 – €88 million) has, in the meantime, returned all of its original capital and is approaching final liquidation.
17Capital Fund 3 will continue with the established and unique investment strategy of 17Capital’s predecessor funds by providing highly-flexible preferred equity to Limited Partners looking for early liquidity without selling on the traditional secondary market, and to General Partners seeking capital to make new or follow-on investments.
Managing Partner Augustin Duhamel added: “Deal flow for our highly-differentiated product has reached unprecedented levels and is expected to remain buoyant for years to come. We feel our competitive and flexible source of capital is of great use to many private equity investors.”
Today, 17Capital has approximately €800 million under management, managed by an international team of 13 professionals under the leadership of Pierre-Antoine de Selancy and Augustin Duhamel, and supported by a strong and very active board of four experts with extensive private equity experience.
Established in 2008, 17Capital is a specialist preferred equity investor in private equity funds.
Preferred equity is a tool for investors to optimise the management of their private equity portfolios:
• Investors in private equity (Limited Partners) can unlock liquidity while preserving future portfolio-upside – an attractive alternative to a traditional secondary sale of assets
• Private equity fund managers (General Partners) can increase investment capacity with a more flexible source of funding than bank debt
17Capital can invest between €5 million to €300 million in concentrated or diversified global portfolios. www.17capital.com