B4 Investimenti eyes next fund launch in 2023

Valentina Caiazzo
04 June 2021

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B4 Investimenti, an Italian SMEs-focused private equity house, expects to launch a third fund (B4 H III) in around 24 months, CEO Fabrizio Baroni told Unquote.

B4 plans to start fundraising by 2023 once it has fully deployed its second vehicle, B4 H II - EuVECA, Baroni said.

With B4 H II, B4 exceeded its initial fundraise objectives of €40m, collecting around €50m. Around 90% of LPs in B4's second fund were returning from its first B4 H I fund. The sponsor expects that the third fund might have similar dynamics to the first two funds, Baroni said, adding that it will look to raise €60-70m, in any case aiming to remain under the €100m threshold.

In parallel with B4 H III, B4 is mulling a new investment project but has yet to define its features, Baroni said. It might be a soft restructuring fund, or a hybrid between a private equity and venture capital fund and target smaller firms; or even a special purpose acquisition vehicle (Spac) targeting companies with revenues below €50m, he added.

B4 Investimenti was established eight years ago. The LP base of its two existing funds comprises mostly Italian investors (two thirds), with the remaining third being foreign investors. They are mostly private individuals such as entrepreneurs, managers, small PE managers and lawyers with a club-deal investing approach, according to Baroni.