Oaktree and 17Capital Announce Strategic Partnership
LOS ANGELES & LONDON--(BUSINESS WIRE)--Oaktree and 17Capital are pleased to announce an agreement for Oaktree to acquire a majority stake in 17Capital.
17Capital specializes in providing non-dilutive capital to high-quality private equity management companies, funds and institutional investors that are seeking to finance value creation and portfolio management initiatives. Oaktree is a leader among global investment managers specializing in alternative investments, including credit, private equity, real assets and listed equities.
This mutually beneficial partnership will strengthen both firms’ standing as partners of choice in the private equity sponsor community. The partnership will give 17Capital access to Oaktree’s deep global network and add to Oaktree’s extensive suite of private capital solutions. Following the closing of the transaction, 17Capital, which is headquartered in London, will continue to operate as an independent business, with its own product offerings and investment, marketing, and support teams.
Armen Panossian, Head of Performing Credit at Oaktree, said: “We are pleased to welcome 17Capital and its employees to the extended Oaktree family at an exciting time for our growing private credit business. 17Capital is the market leader in the net-asset-value (NAV) finance sector, one of the fastest developing segments within the asset class. 17Capital’s emphasis on risk control is completely aligned with Oaktree’s investment philosophy. We expect our complementary business models and corresponding expertise to fuel future growth at both firms.”
Pierre-Antoine de Selancy, Managing Partner at 17Capital, added: “Our strategic partnership with Oaktree realizes the vision we had 15 years ago when we created 17Capital. It marks the start of an exciting new stage in our development. The market for NAV financing is growing at a double-digit rate, with increased adoption by private equity managers and investors alike. 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.”
Simpson Thacher & Bartlett acted as advisor for Oaktree. 17Capital was advised by Evercore and Kirkland & Ellis. The transaction is subject to customary closing conditions, including certain regulatory approvals, and is expected to close before the end of the third quarter of 2022.
17Capital is the go-to global source of strategic finance for investors in private equity. It specializes in providing non-dilutive capital to high-quality private equity management companies, funds, and institutional investors as part of their toolkit for value creation and portfolio management.
17Capital 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.
Founded in 2008, 17Capital operates primarily from London and New York and has completed 76 investments, deploying more than $7 billion since inception. To date, 17Capital has raised circa $9 billion. For additional information, please visit 17Capital’s website at https://www.17capital.com/.
Oaktree is a leader among global investment managers specializing in alternative investments, with $166 billion in assets under management as of December 31, 2021. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in credit, private equity, real assets and listed equities. The firm has over 1,000 employees and offices in 20 cities worldwide. For additional information, please visit Oaktree’s website at http://www.oaktreecapital.com/.
Rory King / Claire Keyte
Sard Verbinnen & Co
+1 917 622 11252