17Capital, is pleased to announce that it has closed ten portfolio financing deals, representing an aggregate ca. $1.5bn, across 2020. 17Capital’s counterparties in the ten transactions are all blue-chip private equity managers across Europe, North America and Asia.
17Capital provides non-dilutive, flexible capital to high-quality private equity management companies, funds, and institutional investors for a range of uses, from generating liquidity to capturing new strategic opportunities. 17Capital’s approach of matching a transaction’s structure with the specific situation and the needs of different counterparties means that the deals closed span a variety of financing types across the private equity industry.
The strong level of activity across 2020 has been driven by a greater understanding from GPs and LPs of the benefits of portfolio finance, which is accelerating the long-term growth of the space; the increasing interest from GPs in using management company financing to invest in product expansion and other strategic initiatives; GPs managing leverage and optimising exit timings via top-up funding; GPs providing capital to support portfolio companies in their next stage of growth or to capitalise on new opportunities presented by current market dislocation; and the acceleration of liquidity. Furthermore, 17Capital’s creation of a NAV-based credit offering has created further demand, by providing greater choice for those considering portfolio financing.
While the use of portfolio financing by private equity investors has grown rapidly as the industry has matured since 17Capital first developed it in 2008, this long-term growth trend has been accelerated by the ongoing COVID-19 pandemic. 17Capital has reviewed close to $20bn of potential deal flow since the beginning of 2020, as more and more high-quality GPs and LPs seek flexible financing solutions.
Pierre-Antoine de Selancy, Managing Partner at 17Capital, said
“Our deal pipeline has been at its strongest ever levels, with the impact of COVID-19 accelerating the long-term trend for greater adoption of portfolio financing by both GPs and LPs, something we expect to continue. Throughout 2020 we have remained focused on partnering with successful GPs and LPs, and are delighted to have closed these ten transactions, providing the flexible capital needed to help bolster portfolio companies and capture new strategic opportunities.”