Nearly four years after closing on its last flagship fund, London-headquartered 17Capital is looking to raise its next preferred equity vehicle.
17Capital Strategic Lending Fund 6 is targeting $3.5 billion, a source familiar with the matter told Secondaries Investor.
If its target is reached, Fund 6 marks a sizeable jump from its predecessor, 17Capital Fund 5, which closed on $2.9 billion in June 2021. That vehicle launched in May 2019 with a target of $2.1 billion. Including capital for co-investments and separately managed accounts, the firm collected $4.5 billion for the overall preferred equity programme, Secondaries Investor reported at the time.
17Capital declined to comment on the latest fundraise.
The fund finance specialist is also out with its second credit vehicle focused on NAV lending. 17Capital Credit 2, which launched in September 2023, had collected €1.34 billion as of January, Secondaries Investor data shows.
The firm closed on €2.76 billion for the strategy’s predecessor vehicle in April 2022, according to data from affiliate title Private Equity International. 17Capital managing partner Pierre-Antoine de Selancy told Secondaries Investor at the time that the fund would lend via around 10-15 transactions and has approximately $500 million in discretionary co-investment capital, in addition to non-discretionary co-investment capital.
Oaktree took a majority stake in 17Capital in 2022, citing 17Capital’s role as a market leader in the NAV-backed finance sector and a shared emphasis on “risk control” as key drivers of the deal, Secondaries Investor reported at the time. For its part, Oaktree was acquired by Brookfield Asset Management in 2019.
17Capital deployed over $3 billion across 16 investments over the 12 months to November 2024, according to a statement from the firm. It announced it would receive a $1 billion investment in its private credit strategies from Brookfield Credit. 17Capital had deployed more than $13 billion since its inception in 2008 and raised $13 billion across six successive funds and mandates at that time, the statement said.
Secondaries market fundraising in 2024 boasted strong figures. It collected $97.5 billion last year, according to Secondaries Investor data, which was sizeable, but well short of the record $118.9 billion in 2023. After a slow first half of the year, 2024 was on pace to be a record-breaker, but ultimately fell short after a fourth-quarter slip.
– This story has been updated to clarify 17Capital’s deployment through to November 2024.
