Fund commitment - 17Capital Fund III.

News: Investment News | 1 January 2015

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Connection Capital is delighted to announce the completion of a commitment, on behalf of its clients, to the third fund from 17Capital.

  • Investment date: December 2014
  • Commitment size: undisclosed
  • Legal Advisers to Connection Capital: Gateley LLP

Since its inception in 2008, 17Capital has developed a niche, unique proposition providing liquidity solutions for investors in private equity funds such as listed vehicles, fund of funds or institutional investors. 17Capital provides liquidity in return for priority on the first cash flows coming from the portfolio into which it invests.

  • Private equity fund managers can increase investment capacity with a more flexible source of funding than bank debt
  • Investors with high quality portfolios can unlock liquidity while preserving the future upside of their portfolios - an attractive alternative to a traditional secondary sale of assets
    17Capital’s latest fund will follow the same strategy as its predecessor funds, investing in mature and high quality portfolios with visibility on exits and substantial asset cover.

Clients of Connection Capital were attracted to:

  • an opportunity to access a fund that would typically only be available to institutional investors in an exciting market with significant growth potential
  • a strategy that accelerates the return of capital to investors and therefore has the potential to provide returns much earlier than a traditional private equity fund
  • the potential for attractive returns at a lower risk to loss of capital than traditional private equity funds - attributable to the high level of coverage of asset value, the spread of risk through an underlying portfolio and the spread of investments in a fund
  • the Fund’s strategy tends to produce non-volatile, predictable returns through its contractual preferred return and priority over distributions
  • the strength and depth of the 17Capital team
    Due to the high level of demand from clients, Connection Capital exceeded its original allocation by €0.5m. The Fund, surpassed its original target of €450m to close at its hard cap of €500m.
"It was clear that the unique investment strategy, the strength and depth of the 17Capital team and the attractive risk/return profile of the Fund would be of significant interest to our clients and we are delighted to have exceeded our original allocation.” - Claire Madden, Partner