Riello Investimenti to launch new fund

Alessia Argentieri
21 June 2018

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Riello Investimenti Partners will launch a new private equity fund called Italian Strategy in the coming months, with a €180m target.

The GP plans to hold a first close on €60-70m between October and December 2018, Unquote understands.

The fund intends to invest primarily in majority stakes of Italian SMEs with a turnover between €30-60m and an EBITDA margin of around 12-17%. It will deploy equity tickets between €10-12m and focus on the fashion, food, automotive, furniture and cosmetic sectors.

The GP plans to back buyout transactions with a moderate leverage, around 3-3.5x EBITDA, and to support portfolio companies' acquisition plans through an active buy-and-build strategy.

The fund has already received commitments from pension funds and foundations; the GP expects several banks and family offices that invested in its previous vehicles will re-up in the coming months. In addition, the fund expects to raise capital from numerous international investors after the first closing.

The vehicle will be larger that its predecessor, a €65.3m vehicle called Fondo Gate, which was launched in 2007 and is now almost fully deployed. In addition, the GP raised a €70m private debt fund called Impresa Italia in 2016, which saw a substantial commitment from Fondo Italiano d'Investimento and the European Investment Fund.