Pillarstone, FVS launch €400m fund

Alessia Argentieri
27 July 2018

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KKR-controlled turnaround fund Pillarstone Italy and Italian GP Friuli Veneto Sviluppo (FVS) have launched a new fund dedicated to distressed companies based in the north of Italy.

Unquote understands that the GPs plan to hold a first close in September 2018 on €150-200m and a €400m final close by the end of 2019.

Friuli Veneto Sviluppo is an Italian GP fully owned by Veneto Sviluppo, which is 51% owned by the Italian government, with the remaining 49% being held by a pool of banks. The GP is currently investing via its €50m fund Fondo Sviluppo PMI. The vehicle has so far invested in three companies - Exor International, Partners Associates and Brenta – deploying a total amount of €16.4m, Unquote understands. In addition, the GP manages a VC fund, Fondo di Venture Capital Aladinn, which is almost fully deployed and will enter its divestment period by the end of 2019.

Pillarstone Italy, a restructuring vehicle dedicated to underperforming assets, acquired a portfolio of loans granted to five Italian companies in 2015 from Italian banks Intesa Sanpaolo and Unicredit, with an aggregate nominal value of €1bn.

Pillarstone Italy now has around €2bn in bank debt under management, with more than €200m in committed investment and a portfolio composed of seven businesses: Premuda, Sirti, Lediberg, Manucor, Burgo, AlfaPark and RBD Armatori. The fund has recently completed its exit from Italian packaging specialist Cuki.

Investors
The fund's LP base includes banks, foundations and pensions funds. The GPs expect to receive commitments from Italian and European family offices and private investors in the coming months. Veneto Sviluppo will also invest in the fund, while KKR will deploy capital in specific operations conducted by the vehicle.

Investments
The fund will invest in Italian SMEs based in the region of Veneto, north of Italy, with a turnover of more than €50m. It will be dedicated to finance the growth of companies that are in distressed situations following the failure of Banca Popolare di Vicenza and Veneto Banca. The vehicle will acquire minority stakes by deploying equity tickets of around €20m and debt instruments such as minibonds.

People
Friuli Veneto Sviluppo - Fabrizio Spagna (president).