Portfolio: Funds: Current

17Capital Fund 5

Raising capital?
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A fund which provides liquidity solutions to private equity investors through preferred (priority return) investments in mature private equity portfolios. It therefore offers private investors access to high quality, mature portfolios with shorter return timeframes than traditional private equity funds.

The strategy was pioneered by 17Capital and is the third of the manager’s funds our clients have been able to access in units of £25,000 rather than the Fund’s minimum ticket of €5m.

Investment highlights

  • Date of investmentApril 2020
  • StrategyPreferred equity
  • Fund manager17Capital
  • Target net returnsc1.4x / c12% IRR
  • StatusLive

Investment strategy

17Capital is now a market leader in the use of preferred equity in the financing of private equity portfolios. This innovative approach to investing in private equity enables 17Capital to access high quality assets and new opportunities which are typically not available to traditional secondary investors or debt providers.

17Capital addresses two types of situation: capital raisings or monetisation of a private equity portfolio, and sometimes both in the same transaction. In all cases, 17Capital becomes the senior (preferred) investor in the given portfolio.

The fund manager

17Capital is an independent fund manager with a team of over 50 professionals, led by four partners, across two offices (London and New York).

We have offered the manager’s funds since 2014 and our clients have invested over £10m in the strategy.

Why do we like this preferred equity fund?

This fund gives private investors access to a diverse portfolio of mature, high-quality private equity investments with a shorter time frame to realisation than traditional private equity funds. The contractual nature of most cashflows means that returns are likely to be uncorrelated to traditional equity and fixed income markets. The strategy has shown resilience over the market cycle, with mezzanine type returns for a lower risk profile.

Our Alternative Funds Team

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