In December 2014 our clients committed £2.5m (€3.1m) to 17 Capital’s, third fund which closed at its hard cap of €500m. 17 Capital is an independent, niche, private equity fund manager providing a new means of “liquidity” for investors in private equity funds, such as listed vehicles, fund of funds and institutional investors.
17C allows these investors to release liquidity from their underlying portfolio of investments without
- having to forgo their equity “upside” in the portfolio through a secondary sale of their holdings to a third party
- or being subject to the constraints of debt.
In return for its investment, 17C will normally receive 100% of the cash flows coming from the underlying portfolio until it has received all of its investment back, plus a fixed return of at least 7%. Once this has been satisfied, 17C will then generally take a minority share of the ongoing cash flows from the portfolio.
Its investments normally have a minimum return of at least 1.5x capital and a target IRR of c17%: a target which it has achieved to date.