Wise closes fifth fund on €260m after two months

Greg Gille and Alessia Argentieri
22 July 2019

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Italian GP Wise Equity has closed its fifth buyout fund on its €260m hard-cap.

Unquote reported in early June that Wise had launched its fifth fund and was aiming to hold a first and final close by the end of the summer. Overall, Wisequity V spent less than two months on the road.

The GP stated that it deliberately limited the fund size and therefore did not choose to market it heavily.

Legance - Avvocati Associati, an Italian law firm, provided the main legal advice. Proskauer advised on non-Italian matters. Rede Partners acted as placement agent.

The vehicle is larger than its predecessor, Wisequity IV, which held a final close on €215m in March 2016. The fund is now fully deployed across eight deals and has made one exit, with half of commitments already returned, the GP said. Wise also stated that the vehicle – and its predecessor Wisequity III – have so far generated a 4.5x multiple.

Wise was still on the road when another Italian mid-market private equity firm, Progressio SGR, put the finishing touches on its own fundraising. Progressio held a final close for Progressio Investimenti III, which launched in 2017, on its €250m hard-cap at the end of last week.

Investors
At the time of the launch, Unquote learned that Wisequity V's LP base would be primarily composed of pension funds, funds-of-funds, insurance companies and family offices; 40% of LPs hail from Italy, with the remainder coming from other European countries.

Most of the LPs from the previous vehicle re-upped, alongside several new investors from Europe.

Investments
The new fund will make eight or nine investments in Italian family-owned mid-market companies, operating in niche B2B sectors, with an EV in the €20-70m bracket.

Wisequity V will target majority stakes and will deploy equity tickets in the €5-20m range. It will apply moderate leverage of up to 3x EBITDA. Furthermore, it will pursue a buy-and-build strategy aimed at strengthening its portfolio companies' market position and boosting their expansion.

People
Wise Equity – Michele Semenzato (co-founding partner).