Oaktree’s 17Capital Seeks $10 Billion to Finance Buyout Funds

Oaktree Capital Management-backed 17Capital is looking to raise around $10 billion across two new funds, as the specialist lender capitalizes on buyout firms raising money in increasingly unorthodox ways.

17Capital provides senior loans to private equity funds as well as preferred equity. The two strategies are targeting roughly $5 billion apiece, said people familiar with the matter, who asked not to be named. The London-based firm declined to comment.

It’s part of a niche field of lenders to private equity funds that want to borrow against their portfolio companies, known as net asset value financing. This strategy is becoming more ...