17Capital has closed its debut credit fund at a hard cap of $2.9 billion, beating its $1.65 billion target. The fund will provide NAV loans to private equity managers in Europe and North America.
20 April 2022 – 17Capital has announced the final close of its inaugural 17Capital Credit Fund. The fund raised $2.9 billion USD, hitting its hard cap and exceeding its initial $1.65 billion USD billion target. It is the largest debut private credit fund raised globally since 2009 and is one of the largest debut funds ever raised (source: Preqin).
17Capital’s credit fund provides NAV loans to high-performing private equity managers in Europe and North America, which are mostly used by managers to grow their portfolios but also to generate interim liquidity for their investors. It is a natural extension of 17Capital’s well established preferred equity offering that 17Capital pioneered in 2008 and is currently investing out of its fifth fund (closed at $2.9 billion in June 2021).
The Credit Fund has a global, blue-chip investor base and has already deployed €1 billion ($1.1 billion USD) across 7 loans, with a further €800 million ($880 million USD) syndicated to co-investors.
Pierre-Antoine de Selancy, Managing Partner at 17Capital, said: “We are grateful for the support from our investors and are delighted they share our excitement for this asset class. 17Capital pioneered the NAV financing market in 2008 and it is now a recognized tool for top tier private equity investors to manage their portfolios. In 2021, we deployed $3 billion, of which over 90% was alongside the top 100 managers globally by assets under management. In 2022, we are on track to deploy $3bn in the first half of the year, doubling our 2021 investment pace.
Reaching the hard cap for the credit fund enables 17Capital to address the huge market opportunity and underscores 17Capital’s position as the global market leader in NAV financing.”
The fund has been raised amid surging demand for NAV financing – the potential market is forecast to reach $700 billion by 2030, up from more than $100 billion today, according to findings from 17Capital’s research report.
17Capital has pledged to donate a percentage of the carried interest earned from the 17Capital Credit Fund to Epic, the global non-profit organization fighting to change the lives of disadvantaged youth. This follows the same pledge made for 17Capital Fund 5 in 2021 and 17Capital Fund 4 in 2017, when the firm was the first private equity fund to make the pledge. Website: www.17capital.com/epic
17Capital is the go-to global source of strategic finance for investors in private equity. It specializes in providing non-dilutive capital to high-quality private equity management companies, funds, and institutional investors as part of their toolkit for value creation and portfolio management.
17Capital offers portfolio finance across the capital structure, providing a broad range of financing options. Investments are structured to support clients’ objectives, while keeping the interests of GPs and LPs aligned.