Italian asset manager IDeA Capital Funds SGR and H.I.G. Capital’s credit affiliate Bayside Capital have raised 260 million euros (about $288 million) in the first closing of their inaugural corporate credit recovery fund. The fund will back distressed Italian mid-sized companies with the aim of helping them restructure and turnaround.
PRESS RELEASE
LONDON–(BUSINESS WIRE)–IDeA CCR (Corporate Credit Recovery) I Fund, (the “Fund”), an investment platform managed by IDeA Capital Funds SGR (“IDeA”) and developed with support and funding from the anchor investor Bayside Capital (“H.I.G. Bayside”), a credit affiliate of global investment firm H.I.G. Capital, will invest in Italian mid-sized enterprises in distressed situations, aiming to help them restructure and turnaround, and consequently help banks maximize the recovery of their original loans.
The Fund launches today with a first close at €260 million comprising two-sub funds: a Credit Fund and a New Money Fund. The Credit Fund consists of the loans in eight companies contributed by seven leading banks in Italy: UniCredit, BNL/BNP Paribas, Banca Popolare di Vicenza, MPS, BPM and Biverbanca (the “Participant Banks”). The loans have been contributed in exchange for units of the Fund. The New Money Fund provides new capital to support the turnaround and growth of the companies in the Credit Fund. H.I.G. Bayside has underwritten 50% of the New Money Fund, IDeA Capital and third party investors contributed the balance.
The Fund will be managed by an experienced team led by Francesco Gori, former CEO of Pirelli Tyre and Managing Director of Pirelli & C., and Vincenzo Manganelli, responsible for the financial restructuring process. Raffaele Legnani, Managing Director and Head of H.I.G. Capital in Italy, and Giuseppe Mirante, Managing Director of H.I.G. Bayside, will join the investment committee of the Fund.
Over time, additional portfolio companies will be contributed to the Fund by the Participant Banks.
Roberto Saviane, Chairman of IDeA Capital Funds, noted: “IDeA Capital Funds will contribute to the new venture with the knowledge and contacts in the financial and industrial Italian sector and will support the relaunch of the portfolio companies with its management and financial skills.”
Duncan Priston, Managing Director at H.I.G. Bayside, commented: “We are extremely pleased to announce this important collaboration with IDeA. We look forward to working together and leveraging our collective skills to identify and invest in attractive mid-market Italian companies.”
Raffaele Legnani added: “The interest of H.I.G. Bayside is to further invest in Italy and to bring to the IDeA CCR Fund not only capital, but also know-how, leveraging on its expertise in debt and turnaround investments and on H.I.G. Bayside’s international presence and network.”
About IDeA Capital Funds
IDeA Capital Funds SGR S.p.A. was established in December, 2006, and is 100% owned by DeA Capital S.p.A., a De Agostini Group company active in Alternative Asset Management. IDeA is one of the leading independent Italian asset managers active in private equity, with €2.2 billion of assets under management. It invests both in global funds of funds and in direct funds which are primarily focused on Italian companies. These two business areas are part of the same value-creating strategy implemented for the benefit of IDeA’s investor base, which includes sophisticated institutional investors as well as successful entrepreneurs. IDeA manages four funds of funds (IDeA I Fund Of Funds, Icf II, IDeA Crescita Globale, Icf III), a direct co-investment fund which invests in minority positions of mainly Italian mid-market companies (IDeA Opportunity Fund I), two sector-focused funds (IDeA Efficienza Energetica e Sviluppo Sostenibile, and IDeA Taste of Italy). In addition, IDeA started managing the fund Investitori Associati IV in April, 2015.
About H.I.G. Capital
H.I.G. Capital is a leading global private equity and alternative assets investment firm with over $20 billion of capital under management.* Based in Miami, and with offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco and Atlanta in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris and Rio de Janeiro, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused/value-added approach. For more information, please refer to the H.I.G. website at www.higcapital.com.
About Bayside Capital
Bayside Capital (“Bayside”) is a credit affiliate of H.I.G. Capital, with over $4.5 billion under management. Bayside is focused on providing capital solutions to address complex situations within short timeframes. Through improved access to capital or facilitating balance sheet realignments, Bayside can help support future strategies and expansion plans. Bayside has the ability to provide capital through a broad range of securities including asset-based and cash flow senior and subordinated debt, equity, debtor-in-possession facilities, and special situation loans. Bayside has the experience and resources to help companies quickly resume growth initiatives and improve their strategic position. For more information, please refer to the Bayside website at www.bayside.com.
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