12th July 2021
Fundraise is one of the largest ever pools of capital raised for portfolio finance
17Capital, the global go-to source of strategic financing for investors in private equity, is pleased to announce it has raised $4.5 billion for its portfolio finance offering. 17Capital provides capital to high-quality private equity management companies, funds, and institutional investors seeking flexible and non-dilutive financing, in return for exposure to the cashflows of underlying portfolio companies.
This fundraise, one of the largest ever pools of capital raised for portfolio finance, includes $2.9 billion for 17Capital Fund 5, which has reached a final close at its hard cap. It also includes investments through separately managed accounts and capital raised for co-investment opportunities.
More than half of the commitments to Fund 5 came from new investors, while approximately 90% of existing 17Capital investors committed capital to the new vehicle. Investors in Fund 5 include leading pension, insurance, endowment and sovereign wealth funds from Europe, North America and Asia.
The strong support 17Capital has received from investors comes at a time of growing adoption of portfolio financing by high-quality private equity investors, as it becomes an increasingly established tool for both defensive and opportunistic purposes. The long-term growth of the portfolio financing market has been accelerated by the impact of COVID-19, as shown by 17Capital seeing record deal volume over the past 18 months. In the last 12 months, 17Capital closed 13 portfolio financing deals representing an aggregate transaction value of ca. $2.7bn, after reviewing over $20bn of potential deal flow across the year.
17Capital has pledged to donate a percentage of the carried interest earned from Fund 5 to Epic, the global non-profit organisation fighting to change the lives of disadvantaged youth.
Pierre-Antoine de Selancy, Managing Partner at 17Capital, said:
“We are humbled by the level of support we have received from investors and would like to thank all our new and existing investors for the confidence they have placed in us. When we pioneered portfolio financing in 2008, we recognised there was significant potential for it to become an established tool for fund managers and investors around the world. We are proud to continue our partnerships with high quality fund managers and investors and see the long-term growth of the market continuing as the industry becomes even more sophisticated and demand for flexible and non-dilutive portfolio financing reaches unprecedented levels.”
