17Capital Raises $5.5 Billion Fund to Lend to Buyout Firms

Private credit manager 17Capital has raised $5.5 billion to lend to buyout firms directly, its first fund since being acquired by Oaktree Capital Management.

The fund, known as 17Capital Strategic Lending Fund 6, invests in management companies of private equity firms, the entities that oversee investing, according to a statement from the firm. Management companies may want to borrow money to finance commitments to their own funds, expand their business or support succession plans. This debt uses cash flows such as fee streams and equity returns as collateral.

Investors in the fund include pension funds, insurance companies, sovereign wealth funds, ...