In April 2017 our clients committed more than €3m to 17Capital Fund 4 L.P, which closed with total commitments of more than €1bn. The fund manager, 17Capital, is an innovative private equity investor focused on providing liquidity to institutional investors in private equity funds such as listed vehicles, fund of funds, GPs and LPs.
This, the firm’s fourth fund, provides liquidity to these investors by structuring advances which are secured against the cash flows of the underlying investment portfolios. This entitles the Fund to a priority return plus a fixed additional return and in some case the potential for a share of the upside. As such, it offers its investors access to high quality, mature portfolios with shorter return timeframes than traditional PE funds.
17C has generated a combined 18% IRR on its three previous funds to date, with investment multiples on track to hit 1.6x investment once all underlying deals are realised. We are very familiar with 17C, having secured in late 2014 an allocation for our clients in 17Capital’s previous fund (Fund 3) which is now fully deployed.