GP Profile: NB Renaissance outlines acquisition and exit plans in final stretch of current fund deployment

The fund made its seventh acquisition in the form of Italian safety footwear producer U-Power in May. The Italian fund, whose controlling shareholder is US asset manager Neuberger Berman, is now prepping one more acquisition in the technology space, said Canè.

NB Renaissance Partners III is a 2019-vintage vehicle that held a EUR 1.01bn final close against a EUR 1bn target in December 2021. It is planning to make about nine investments in total, said Canè.

The GP has been in advanced talks to buy an unnamed tech company, operating in the software space serving consumers globally, sister publication Mergermarket reported in June. The deal is set to lead to a signing in September, as reported.

The firm, which typically deploys average equity tickets of EUR 80m-EUR 100m but can ink larger deals by co-investing with other funds, is currently eyeing opportunities across technology, sustainability, specialised industrials and healthcare. Within these sectors it is particularly interested in biotechnology and circular economy, he said.

Exit plans
In the coming months, the firm is also prepping to exit two Fund III portfolio companies: Italian manufacturer of hose fittings Hydro Holding; and Italian leather goods company Rino Mastrotto, as reported.

It is also looking to exit both of its two unrealised investments from first and second funds, aiming to complete at least one sale by year end or in the beginning of next year, said Canè, without disclosing the names of the specific companies.

Italian footwear industry leather-cutting machines manufacturer Comelz was acquired by the firm in 2017 and could come up for sale in H2 2023, as reported. Uteco, an Italian producer of machinery for the packaging industry, was acquired by the GP in 2018 and is also currently in its portfolio.

The firm sold Italian biodegradable products producer Novamont to trade in April. It previously sold Italian producer and distributor of specialty fertilizers Biolchim Group to US family-owned conglomerate J.M. Huber Corporation, in August 2022, in a deal valued at around EUR 600m, as reported.

Focus on growth

The firm is not planning to launch another fundraise in the near term, he said. In spite of the liquidity challenges that investors are facing, largely due to the denominator effect, NB is bullish on the support of domestic, Italian LPs.

“On the domestic side there is a growing interest in private equity, especially in the few firms that operate in Italy like us, because there is strong interest from the government to invest pension funds’ capital in in Italian companies,” he said.

Canè believes that Italian businesses will continue to attract investments as they mainly target the high-end part of global markets, which is seeing continued demand. “The country is in the best position in Europe to explore these opportunities,” he said.

Looking ahead, the GP plans to continue its core strategy of building investment platforms via add-ons to its portfolio companies. It has completed more than 40 acquisitions globally thus far and plans to continue strengthening its investments via M&A, he said.

“Unless these acquisitions are transformational, they can typically be self-financed by our companies so we do not plan as of today to put [in] additional money,” he said, noting however that some of its latest platform investments might need cash injections.

Its Fund III portfolio company SICIT Group, an Italian biostimulants manufacturer, acquired 51% of Chile-based Patagonia Biotecnologia in May, as reported. The sponsor has also said it will actively target M&A for U-Power and Hydro Holding.

[Editor's note: Post-publication, the second paragraph has been amended to clarify Neuberger Berman is a controlling shareholder of Italian PE firm NB Renaissance.]

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