Efigestioni launches Efilog Private Equity

01 March 2008

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Fund

Milan-based Efigestioni has launched Efilog Private Equity, a fund specialising in the maritime and logistics sectors. The fund, still in its fundraising stage, has a target of EUR50m and hard-cap of EUR80m and expects to reach its first closing during this year's second quarter. The fund has a life span of 12 years with a three-year extension. Management fees have been set at the industry's standard of 2% with a hurdle of 5%.

The vehicle is a closed-end fund, and has the flexibility to invest through the regular private equity vehicles as well as through convertible loans and mezzanine. No placing agents have been retained given that the operator benefits from existing industry contacts in the maritime sector. Studio Legale Bisogni has been retained as legal adviser.

Investors

Efibanca will commit 15% of the fund's target. The vehicle seeks to attract investments from national and international industrial players as well as the participation of some banks. There are three share tranches, a tranche A set at EUR50,000 for companies; a tranche B set at EUR500,000 for individuals, with access to a 4% participation of a 9% carried interest; and a tranche C to be destined for the fund management.

The fund seeks to attract families of entrepreneurs seeking to diversify their private investment portfolios; Italian institutional investors which have limited private equity structures and are interested in investing in the maritime sector; foreign institutional investors seeking investment opportunities in Italy; sector operators who intend to make financial, rather than industrial, investments; and investors in other areas who see possibilities for interesting financial returns from the logistics sector.

Investments

The fund will carry out deals in maritime projects with the flexibility to carry out an average EUR20m investment per transaction including leverage. Equity stakes will vary on a case-by-case basis. The fund expects to close three to five transactions per year during the investment phase and will co-invest with industrial partners. The fund is already assessing four to five projects for the year to come.

The investment strategy will focus on Europe, but will also assess possibilities in the Middle East and Asia in the maritime sector, as well as companies involved in all types of logistic services.

People

Fabrizio Vettosi co-manages the fund with Ciro Russo and Viviana Scremin. Vettosi has experience in the shipping sector and is the vice-president of the Italian Shipping Association. Russo has a background in investment banking, shipping and logistics, while Scremin has 20 years' experience in corporate finance having formerly worked at Efi Banca corporate investment and finance division. She will be acting as administration, compliance and staff manager. They will be supported by another professional.

Name: Efilog Private Equity

Target: EUR50m

Launched: January 2008

Focus: Pan European, Middle East, Asia

Maritime and Logistics

Contact: Fabrizio Vettosi

Address: Via Prisa 3, Milan 20121, Italy

Tel: + 39 02 8586 9900

Fax: + 39 02 87 4788

Adviser: Studio Legal Bisogni.