17Capital, the global go-to source of strategic portfolio finance for investors in private equity, today announced that it has completed 14 NAV financing deals, representing approximately $2.8bn, across 2021. This record year builds on the ten transactions, worth approximately $1.5bn, completed in 2020.
Counterparties in this year’s transactions were top-tier private equity managers across Europe, North America and Asia. 80% were among the top 100 global private equity managers by size, and two transactions were closed with top ten managers. Over 60% of deal volume was conducted with repeat clients, highlighting 17Capital’s focus on forming long-term partnerships.
17Capital saw accelerating demand for its products in 2021, reviewing deals worth $25bn since the beginning of the year, compared to $19bn of deal-flow in 2020. This strong level of demand has been driven by a greater adoption from GPs and LPs of the benefits of non-dilutive, strategic NAV financing.
NAV financing has emerged as an accepted and important financial tool by private equity sponsors. The firm received particular interest from GPs in securing additional capital to support strategic expansion through new products and geographies, as well as for portfolio add-ons to fund growth. The firm also saw increasing demand for management company financing to support initiatives such as increased GP commitments and ownership transition.
This year, 17Capital also announced it had raised $4.5bn for its NAV finance offering. The fundraise, one of the largest ever pools of capital raised for NAV finance, included $2.9 billion for 17Capital Fund 5, which closed at its hard cap in July, as well as investments through separately managed accounts and capital raised for co-investment opportunities. The firm invests across the capital structure via its preferred equity and NAV-based credit offerings, providing bespoke financing according to each counterparty’s particular needs.
Pierre-Antoine de Selancy, Managing Partner at 17Capital, said: “We are delighted to have worked with so many top-tier private equity managers, including counterparties with whom we had previously transacted, on the 15 deals closed this year. We are also humbled by the level of support we have received from investors, allowing us to raise the largest ever pool of capital in this space and accelerate our deployment of strategic financing to the world’s leading GPs. It is encouraging to witness the increasing demand for, and adoption of, strategic NAV finance year-on-year, a trend we expect to continue.”