17Capital has closed its Credit Fund 2 at $7.5bn, as the private credit manager sets a new record for NAV loan fundraising and reinforces the rapid growth of the asset class.

The fund, the largest of its kind, will provide net asset value (NAV) loans to private equity funds across the US and Europe, offering flexible capital to support portfolio expansion, refinancing, and accelerated investor distributions.

“17Capital has been at the forefront of the NAV finance market for 18 years, this fundraise reinforces our position as the market leader,” said Pierre-Antoine de Selancy, Managing Partner at 17Capital.

The vehicle significantly exceeds the firm’s previous NAV loan fund, which closed at $2.9bn in 2022, highlighting strong investor demand for structured private credit solutions.

17Capital has already deployed approximately $2bn from the new fund and, since launching its NAV loan strategy in 2020, has invested more than $7.5bn across 30 transactions.

“We have seen a substantial uptick in demand for NAV loans in recent years, particularly from managers in the US,” said Dane Graham, Partner at 17Capital. “Competition among private equity managers is driving adoption.”

The strategy enables private equity firms to access non-dilutive capital, allowing them to extend holding periods, fund additional investments, and enhance returns without exiting assets.

The fundraise ranks among the five largest private credit funds globally over the past year, reflecting the increasing institutionalisation of NAV finance within the broader private credit market.

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