Italian GP Arcadia to start marketing new fund by end of 2021

Arcadia's third fund will be larger than its predecessor, targeting a size of around €100m, Arnaboldi said. The GP plans to attract commitments from a base of loyal institutional investors, primarily Italian pension funds, banking foundations and institutions, but also counts on attracting international LPs for the first time.

"Thanks to our results and our strong track record, we expect to attract the interest of a large base of LPs for our next fundraising project," Arnaboldi says. "We intend to broaden our scope both in terms of target size and investor base, with the addition of several European LPs and international players."

The new fund will follow the same strategy as Arcadia Small Cap II, which closed on €80m in May 2019 and is currently almost 60% deployed. The vehicle invests in Italian SMEs generating revenues of €10-50m with an EBITDA margin of at least 10%, and a headcount of up to 250 staff. It looks for assets operating in highly fragmented segments of the Italian market, targeting pockets of opportunities for consolidation.

The GP's first fund closed on €53m in 2012, according to Unquote Data. The fund has a single asset remaining: eyewear company Vision Group.

Click here to read an in-depth profile of Arcadia, including additional intelligence on the firm's current portfolio and its investment pipeline

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• Topics
• Funds
• Buyout
• Southern Europe
• Italy