17Capital has closed its first NAV lending fund on its hard-cap of €2.6 billion of capital.
The vehicle, 17Capital Credit Fund, will provide NAV loans to private equity managers in Europe and North America. The firm said these loans are primarily used by managers to grow their business but can also generate interim liquidity for LPs.
It said the credit vehicle is a natural extension of its existing preferred equity offering, which closed a $2.9 billion fund in June 2021.
The fund has an investor base primarily from North America and Europe, with 30 percent of commitments from existing investors. It comfortably beat its initial €1.5 billion target.
The vehicle has already deployed €1 billion, with an additional €800 million syndicated to co-investors across seven loans to private equity managers.
Citing its own research, 17Capital said there is high demand for NAV financing products, stating that with the market is forecast to reach more than $700 billion by 2030.
Pierre-Antoine de Selancy, managing partner at 17Capital, said: “We are grateful for the support from our investors and are delighted they share our excitement for this asset class.
“In 2021, we deployed $3 billion, of which over 90% was alongside the top 100 managers globally by assets under management. In 2022, we are on track to deploy $3 billion in the first half of the year, doubling our 2021 investment pace.”