Wise Equity to launch €260m fifth buyout fund

Alessia Argentieri
06 June 2019

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Italian GP Wise Equity will launch its fifth buyout fund with a €260m target this month.

Wise expects to hold a first and final close for its new fund by the end of the summer.

The vehicle will be larger than its predecessor, Wisequity IV, which held a final close on €215m in March 2016. The fund made its seventh deal this week by acquiring a 69% stake in cyber security specialist Innovery and is now 85% deployed. It plans to make one last investment in the coming months.

Wisequity V's LP base will be primarily composed of pension funds, funds-of-funds, insurance companies and family offices; 40% of LPs will hail from Italy, with the remainder coming from other European countries. Most of the LPs from the previous vehicle are expected to re-up, alongside several new investors from Europe.

The new fund will make eight or nine investments in Italian family-owned mid-market companies, operating in niche B2B sectors, with an EV in the €20-100m bracket.

Wisequity V will target majority stakes and will deploy equity tickets in the €5-20m range. It will apply moderate leverage of up to 3x EBITDA. Furthermore, it will pursue a buy-and-build strategy aimed at strengthening its portfolio companies' market position and boosting their expansion.