$778 billion of new capital flowed into private assets in 2018, with global private equity net asset value growing by 18% during the year and by a staggering 7.5 times since 2000. Investing in private companies has changed a lot over the last 20 years and is now much more competitive with nearly 9,000 active private market firms.
This growing competition continues to drive innovation and efficiency across the industry, both in terms of portfolio company management and value creation.
Traditional equity and debt financing are widely available at portfolio company level but what new and innovative financing options are available at the fund/portfolio level or to the management company? What options are available to improve the capital structure of private equity funds or holdings, whether to make follow-on investments into portfolio companies or to create liquidity without losing control or upside of such portfolio companies.
Preferred equity is a little known and under-applied option for many of the challenges and opportunities, that investors in private assets face across different economic cycles. Preferred equity financing has a lower cost of capital than ordinary equity and is significantly more flexible than debt capital.
In this update, we hope to give you an insight into some of the ways our clients have made use of our flexible financing.
Statistics from McKinsey Global Private Markets Review 2019.
For 11 years, 17Capital has been providing financing to their clients, all of them private equity investors with outstanding track records. Whether to fund new investments, or to send dividends to shareholders, 17Capital always focuses on helping investors optimise their capital structure and achieve their ambitions.
With $2 billion invested in Europe and North America, and a team of 38 professionals between London and New York, 17Capital has unparalleled experience of financing private equity portfolios. 17Capital pioneered the use of preferred equity with portfolios of private equity investments, whether for direct investors, funds, or other firms that invest in private companies, and continue to lead the way in this new segment of the alternative asset management industry.
Preferred equity is flexible, unconstrained and non-dilutive capital with typically no maturity, security or covenants. 17Capital is the global “go-to” source of preferred equity financing for investors in private assets.Contact us
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