17Capital has returned to market with its fifth flagship fund and is seeking 50 percent more than its predecessor vehicle raised, Secondaries Investor has learned.
The London-headquartered preferred equity specialist registered 17Capital Fund 5 in May, according to a regulatory filing in Luxembourg. The fund’s target is €1.8 billion, according to a source familiar with the fundraise.
The firm has also registered a co-investment vehicle for Fund 5.
Predecessor Fund 4 raised €1.2 billion in 2017, beating its €800 million target, according to Secondaries Investor data. 17Capital’s funds have more than doubled with each fundraise.
Preferred equity – a tranche that sits between equity and debt in the capital structure – has attracted increased attention in recent years. According to advisor Evercore, 31 percent of buyers offered a preferred equity option last year.
In a June podcast with Secondaries Investor, 17Capital managing partner and founder Augustin Duhamel said his firm saw close to $10 billion in dealflow last year. GPs are also using preferred equity as an alternative to selling minority equity stakes, and a market correction could be a boon for the strategy, Duhamel said.
A spokeswoman for 17Capital declined to comment on fundraising.
– Alex Lynn contributed to this report.