Quadrivio holds €200m interim close for third fund

Amedeo Goria
02 August 2017

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Italian asset management firm Quadrivio Capital has held a €200m closing for its third private equity vehicle, Quadrivio Private Equity Fund 3 (QPEF3).

Following the fund's launch with a €250-300m target in late 2015, the GP held a €130m first closing in December 2015. The GP expects to reach a final close by the end of 2017.

Epic Private Equity is acting as placement agent for the fund.

To date, the vehicle has invested in two assets, printed circuit boards producer Somacis Group and aerosol manufacturer Farmol, while also completing one add-on acquisition for Somacis. At the time of publication, the fund had already drawn down €50m, with a €20m pipeline ahead, according to a statement.

Concurrently, the GP is raising commitments for its Italian SME-lending Quadrivio Private Debt fund. Launched in December 2016, the vehicle has issued two notes, 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.

Quadrivio's second private euqity fund, Quadrivio Private Equity 2, has two remaining assets in its portfolio and posted a 1.3x distribution to paid-in multiple on invested cash and realised a 30% gross IRR, according to a source close to the matter. Furthermore, it targets a 1.7x cash multiple at completion of its divestment phase.

According to local press reports, the GP is looking for a new owner. The firm expects to receive offers until the end of the first week of August 2017 and is reported to have received 30 offers so far. The GP is valued at €20m, according to the Italian press. Tikehau and KKR are understood to be interested in the acquisition, alongside local players Idea Capital Funds and Italmobiliare.

Investors
Both existing and new investors committed capital to the fund. 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.

Investments
The fund targets 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.

People
Quadrivio Capital – Nicola Pietralunga (investment director); Francesca Gennaro, Roberto Giudici (senior investment managers); Francesco Pastor, Luca Chiabrera, Martino Rocca (analysts).