Green Arrow nears close for two funds

Paul Tilt
27 July 2018

Tweet
Facebook
LinkedIn
Google plus
Send to

Green Arrow Capital, which recently acquired Italian private equity house Quadrivio, is nearing a final close for two funds, Unquote understands.

Italian SME lending vehicle Quadrivio Private Debt Fund is set to close on up to €175m by the end of October. The GP launched the fundraise in 2016 with a €250m, holding a first close of €120.2m in December 2016.

Raising the debt fund has been difficult for three main reasons, according to a source close to the raise. The fact that it is a first-time team and that SME lending is a relatively new sector for Italian LPs played a part; the change of control of the management company also led to a freeze on the fund's investment period, which slowed momentum. Despite this, the fund has managed to deploy €45m across six deals since its first close.

The fund targets firms with an enterprise value of between €50m and €500m, and invests in both the primary and secondary debt markets. There will be no leverage applied on the fund level. Investors in the fund include Byblos Pension Fund and Fondo Italiano d'Investimento.

Investments completed to date include a €9.5m credit facility for the Sici-backed MBO of Corpo dei Vigili Giurati in June 2017 and a €10m debt to support Carlyle's acquisition of Venice-based shoes manufacturer Golden Goose.

The GP is also set to close Quadrivio Private Equity 3 by the beginning of September on up to €250m. The GP held a first close for the fund on €130m in December 2015 and an interim close on €200m in August 2017.

Epic Private Equity is acting as placement agent for the fund. Unquote understands the fund will shortly be changing its name to Green Arrow Capital Private Equity 3 and that it was around 30% deployed at the end of June 2018.

To date, both existing and new investors committed capital to the vehicle. The LP base includes domestic and international pension funds, banks, insurance companies, funds-of-funds and family offices, such as Poste Vita, Fondazione Monteparma, Cassa Nazionale di Previdenza e Assistenza a Favore dei Dottori Commercialisti (CNPADC) and Fondo Pensione BCC.

It will target majority and controlling positions in businesses with an enterprise value of between €30–100m. The GP aims to deploy equity tickets ranging between €10-30m.