17Capital, an NAV finance provider, announced the final closing of 17Capital Strategic Lending Fund 6, with “approximately $5.5 billion of commitments, including co-investment and affiliated vehicles.”
The Fund follows its predecessor, 17Capital Fund 5, which “closed at $2.9 billion in July 2021.”
The Firm has now “raised $19 billion since its inception.”
Fund 6 attracted a global, blue-chip investor base “comprising pension funds, insurance companies, sovereign wealth funds, family offices and endowments across North America, Europe, the Middle East and Asia.”
The strength of the support from investors “demonstrates the acceptance of NAV finance within the private equity industry.”
It marks the first fund raised by 17Capital since “forming its strategic partnership with global credit specialist Oaktree.”
Fund 6 has committed $2.5 billion across “ten investments, split evenly between the US and Europe.”
It is the latest vehicle for 17Capital’s Strategic Lending program, which provides non-dilutive, “flexible capital solutions to management companies (GPs) to fund larger GP commitments, franchise growth and consolidation and support succession plans.”
In addition to Strategic Lending, 17Capital manages a Credit program focused on “providing NAV loans to private equity buyout funds.”
Since launching its inaugural Credit Fund in 2020, which “closed at €2.6 billion, the Firm has deployed $6.7 billion in NAV loans through its Credit program.”
17Capital continues to be active in the fund-level financing market, “as market adoption of NAV loans continues to increase.”
Reflecting its sustained philanthropic approach, 17Capital has “pledged a percentage of the carried interest earned from the Fund to Epic, a global non-profit organisation fighting to change the lives of disadvantaged youth.”
The commitment reflects an initiative that 17Capital launched in 2017 with Fund 4, becoming the private equity fund “to pledge a portion of carried interest to Epic.”
That commitment continued “with Fund 5 and the 17Capital Credit Fund.”
As noted in the update, 17Capital is a private credit manager specializing “in NAV finance for the private equity industry.”
It specializes in providing non-dilutive capital to “private equity management companies, funds and institutional investors to increase investment capacity and finance strategic initiatives.”
Investments are structured to “support clients’ objectives, while keeping the interests of GPs and LPs aligned.”
Founded in 2008, 17Capital operates primarily from London and New York and has “completed 119 investments and 57 exits, raising $19 billion since inception across eight successive funds and mandates.”