Three Hills holds €200m final close for second fund

Amedeo Goria
25 July 2016

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London-based alternative investor Three Hills Capital Partners (THCP) has held a final close on €200m for its second vehicle, Three Hills Decalia, exceeding its initial €150m target.

The vehicle is managed by Three Hills in partnership with Geneva-based investment firm Decalia.

To date, the fund is more than 40% invested and plans to be fully invested within 18 months. The vehicle has already injected €75m into four companies, including UK software provider Genius Sports Group, Italian nylon manufacturer Aquafil, online fashion marketplace Tomorrow and renewable power producer Building Energy.

The GP's first vehicle, Three Hills, was launched in November 2013 and held its final close on its €100m hard-cap in October 2014. The vehicle is now fully invested. It was initially raised in partnership with Hutton Collins, following the spinout of THCP from Hutton Collins, but it now stands as a fully independent entity.

THCP was founded in November 2013 by Mauro Moretti, a former partner at Hutton Collins, which he had joined in 2008 from BC Partners. The team also includes Leks de Boer and Michele Prencipe, both former Hutton Collins employees.

Investors
According to a statement, the fund raised capital from several European institutional investors, family offices, high-net-worth individuals and industrial holdings.

According to a source familiar with the situation, the vehicle raised capital from existing and new investors. The partnership with Decalia notably allowed the GP to expand its LP base geographically. The majority of the investors are a mix of institutional LPs and family offices.

Investments
As its predecessor, the fund targets subordinated private debt and equity investments across European mid-market businesses.

Through this vehicle, the GP targets buy-and-build projects via minority buyouts, with a preference for packages mixing equity and debt – equity tickets range between €15-50m. The GP will consider co-investments alongside its LPs to raise the equity tickets up to €100m.

People
Three Hills Capital Partners – Mauro Moretti (founder, managing partner).