Arcadia Small Cap II holds €47m first closing

Amedeo Goria
12 October 2017

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Private equity investor Arcadia has held a €47m first close for its second vehicle, Arcadia Small Cap II.

Established by former Bridgepoint Italian representatives Guido Belli and Simone Arnaboldi, Arcadia launched its second small-cap-dedicated investment fund with a €100-125m target in September 2016. The fund is expected to follow its €53m predecessor, Arcadia Small Cap, in terms of investment strategy, unquote" understands.

In addition to the amount raised at first close, the GP is understood to have raised an additional €10m, which will be included in the following close. The firm expects to reach a final close by H1 2018, while a second closing in excess of €70m is expected to be held in late 2017 concurrently to the first investment, according to a source close to the situation.

Following the launch of its second fund, the GP hired three new team members, according to press reports.

Arcadia's first fund has three assets in its portfolio and delivered its first exit in November 2016, reaping a 90% IRR, said the source. The fund is now 80% deployed.

Investors
The fund attracted commitments from Italian institutional investors, which were already invested in the previous vehicle. Furthermore, the European Investment Fund also committed capital to the fund.

Investments
The vehicle seeks all-equity acquisitions of Italian SMEs generating revenues ranging between €10-50m and with a headcount of up to 250.

According to the source, the GP expects to complete eight investments withing the fund's four-year lifespan.

People
Arcadia – Giulio Belli (chair); Simone Arnaboldi (CEO).