Oaktree Capital Management agreed to acquire a majority stake in 17Capital, which specializes in providing non-dilutive capital for private equity management companies, funds and investors that are seeking to finance value creation and portfolio management initiatives.
According to the announcement, 17Capital has raised $9 billion to date and has completed 76 investments, deploying more than $7 billion since inception.
The partnership between the firms will give 17Capital access to Oaktree’s network and will be added onto Oaktree’s suite of private capital solutions. London-based 17Capital will continue to operate, however, as an independent business, with its own product offerings and investment, marketing and support teams.
“17Capital is the market leader in the net-asset-value finance sector, one of the fastest developing segments within the asset class,” said Armen Panossian, head of performing credit at Oaktree, which has $166 billion in AUM. “17Capital’s emphasis on risk control is completely aligned with Oaktree’s investment philosophy.”
According to 17Capital Managing Partner Pierre-Antoine de Selancy, the market for NAV financing is growing at a double-digit rate, with increased adoption by private equity managers and investors alike. The firm offers portfolio finance across the entire capital structure, providing a broad range of financing options. Investments are structured to support clients’ objectives, while keeping the interests of GPs and LPs aligned.
“We look forward to strengthening our position as a leader in the fund finance market by working with Oaktree’s extensive network in North America and around the globe,” said de Selancy.