Wisequity IV hits €215m hard-cap

Amedeo Goria
14 March 2016

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Milan-based GP Wise has closed its fourth vehicle, Wisequity IV Fund, on its €215m hard-cap after six months on the road.

Launched in October 2015 with a €200m target, the vehicle aims to complete 8-10 transactions within its five-year investment phase.

According to the GP, its fourth fund will follow the investment strategy of its predecessor, which, contrary to the first and the second vehicles, targeted companies generating their revenues mainly from export.

Wise currently manages two buyout funds. One vehicle is Wisequity II Fund, which reached a €170m final close in 2006 and retains a controlling stake in two portfolio companies and a minority stake in OpenjobMetis, an Italian employment agency that floated on Borsa Italiana in December 2015.

The other vehicle under management is Wisequity III, which closed on €180m in 2011. To date, Wisequity III is 84% invested across eight portfolio companies. According to the GP, the fund has exited its first two investments: inks producer Kian Group in October 2015 and multimedia publisher EidosMedia in December 2015.

London-based advisory firm Rede Partners acted as placement agent for Wise for this latest fundraise.

Investors
The firm claims to have seen strong demand from both existing and new investors. Italian institutional investors accounted for 25% of the total commitment while international investors, including funds-of-funds both from the US and Europe alongside the European Investment Fund, represented 60% of total commitments. The management team and high-net-worth individuals also took part in the fundraising.

Investments
As was the case for the previous vehicle, Wisequity IV aims to acquire majority stakes in Italian family-owned mid-market companies, operating in niche B2B sectors. The fund specialises in LBOs and capital increase transactions. According to unquote" data, the firm focuses mainly on consumer services, industrial companies and consumer goods.

Wise dedicates 12-13% of the committed capital from each of its funds to follow-on transactions. According to Wise partner Michele Semenzato, the GP has made twice as many add-on transaction as it has MBOs.

Wise targets investments in the €5-20m range for companies with enterprise values ranging from €20-200m, generating turnover in the €40-50m bracket.

People
Wise – Paolo Gambarini (founding partner, CEO); Michele Semenzato (founding partner).