17Capital, a nascent secondaries investor, has sealed its debut deal, leading a mezzanine investment of €30 million in a portfolio of four investments owned by Altamir Amboise.
Altamir Amboise, which is listed on the Euronext exchange, was created to make co-investments alongside Apax Partners France and has a portfolio of 20 co-investments.
In the unusual deal with the 17Capital consortium, Altamir transferred four of its most resilient and liquid co-investments to a separate dedicated vehicle, in which 17Capital acquired €30 million of preference shares.
The €30 million proceeds give Alamir additional resources, “given the lack of visibility with respect to the timing of potential disposals and the current low cash position”, the firm said in a statement.
17Capital’s preferred equity ownership allows it to benefit from terms akin to mezzanine finance: 13 percent capitalised interest plus a share of the equity upside, the firm said in a statement.
This is the first deal for London-based 17Capital, which according to market sources is raising its debut fund targeting €200 million. The firm declined to comment.
17Capital was set up last year by two French veterans of the buyout industry, Pierre-Antoine de Selancey and Augustin Duhamel.
De Selancy was formerly a partner at AGF Private Equity, a subsidiary of European insurance group, where he was responsible for all secondary investments as well as leading direct primary and co-investment deals. He has also worked at fund of funds firm Fondinvest, secondaries giant Coller Capital and buyout firm Paribas Affaires Industrielles – now known as PAI Partners.
Duhamel, who worked alongside de Selancy at PAI, was most recently a director at Deloitte Finance in Paris, where he advised clients on distressed investments and turnarounds.