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28th July 2021

Increasing adoption of portfolio financing sees 17Capital close ca.$1.4bn of transactions in just six months

17Capital, the global go-to source of strategic financing for investors in private equity, is pleased to announce that it has closed four deals, representing an aggregate ca. US$1.4bn, in the first half of 2021.

The amount of capital deployed by 17Capital in the first six months of 2021 is already approaching the record ca. $1.5bn invested during the whole of 2020, highlighting the increasing long-term demand for flexible and bespoke portfolio financing.

The transactions this year comprised two preferred equity and two NAV loan deals, with each one supporting a high-quality private equity firm. The NAV loans represent two of the largest market transactions ever executed.

17Capital provides financing to portfolios of private equity assets. Counterparties include high-quality private equity management companies, funds, and institutional investors looking for flexible and non-dilutive financing. Capital is used to create additional investment capacity or to generate liquidity whilst the investor retains ownership of the assets.

17Capital’s dedicated offerings, experience and flexible approach provide unrivalled execution capabilities and ensure each transaction is structured to meet the specific needs of its counterparties.

The strong level of activity this year also reflects a growing appetite for larger such transactions, as the private equity industry grows more experienced with using portfolio financing as an established part of its toolkit for both defensive and opportunistic purposes.

Since 17Capital first pioneered portfolio financing in 2008 its use by private equity investors has grown rapidly as the industry has matured. The firm has now deployed over $5bn in total to date, including its two largest ever transactions, NAV loans each worth ca. $600m, in the last 12 months. The long-term growth trend has been accelerated by the ongoing COVID-19 pandemic, and the innovation of NAV-based credit, which provides greater choice for those considering portfolio financing. Across 2020, 17Capital reviewed close to $20bn of potential deal flow, as more and more high-quality fund managers and investors seek flexible financing solutions.

Pierre-Antoine de Selancy, Managing Partner at 17Capital, said:

“In 2021 so far we have seen a continuation of the trend of increasing demand for 17Capital’s bespoke portfolio financing from private equity investors. The significant deal flow we have already seen this year shows how using preferred equity and NAV loans for strategic purposes in this manner is now an accepted part of how private equity investors create and protect value. As the industry continues to evolve, we expect the market for portfolio finance to only grow larger.”