PEP, Equita join forces to launch SPAC

Amedeo Goria
02 June 2017

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Italian fund manager Private Equity Partners (PEP) and investment bank Equita have signed a joint venture and launched a special purpose acquisition company (SPAC).

In April 2017, PEP and Equita inked a partnership agreement with the aim to provide mixed debt-equity instruments to Italian SMEs on a deal-by-deal basis. As a result of the equally-split joint venture, called Equita PEP Holding, the GPs have now announced the launch of an SPAC.

The new vehicle expects to float in the next few months and raise €100m, according to a source close to the situation. At the time of publication, the investors were not available to disclose financial details on the instrument that the vehicle will provide. However, the vehicle will target Italian businesses operating in the industrial sector and pursue a buy-and-build strategy to support their international expansion.

Beside the partnership agreement, both GPs will continue to operate in their respective areas of expertise.

Most recently, Equita saw the departure of its chairperson Alessandro Profumo, who will become CEO of state-backed corporate Leonardo Finmeccanica. Profumo acquired a controlling stake in Equita alongside the management team from US fund manager JC Flowers in January 2016. Following Profumo's departure, the management team will buy back his stake and Francesco Perilli will take Profumo's role as chair, while Andrea Vismara will become CEO.