DeA launches second €300m food-dedicated buyout fund

Alessia Argentieri
21 October 2019

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DeA Capital Alternative Funds has launched Taste of Italy 2, a buyout fund with a €250m target and €300m hard-cap dedicated to the agri-food sector.

The GP expects to hold a first close in the first half of 2020, Unquote understands.

Cebile Capital acted as exclusive placement agent on the fundraise.

Taste of Italy 2 will be managed by a team led by DeA Capital Alternative Funds managing directors Pierluca Antolini and Andrea Bertoncello, alongside recently appointed managing director Leopoldo Reaño, who will be based in Madrid.

The fund will be larger than its predecessor, Idea Taste of Italy, which was the first Italian fund entirely dedicated to the agri-food sector. The vehicle held a final close on €218m in January 2017, surpassing its €200m target, and is currently around 71% deployed. It has already exited two companies – Piadineria and Lurisia – and plans to make one last investment by the end of the year to reach 75% deployment, Unquote understands. The remainder will be used for additional bolt-ons aimed at strengthening the portfolio companies' market positions.

In addition, the GP also manages Idea Agro, a vehicle managed by managing director Pierfelice Murtas and dedicated to the agriculture sector; the fund was launched with a €100m target and held an €80m first close in 2018.

Investors
DeA expects most of its previous LPs to re-up to this new vehicle and plans to attract commitments from new investors, enlarging its international LP base with institutional players based outside Italy.

Investments
Taste of Italy 2 targets primarily majority and controlling stakes in mid-market companies operating in the agri-food sector, generating EBITDA in the €5-20m range. It deploys equity tickets of €20-40m.

Unquote understands that the fund will deploy around 30% of its capital in Iberia; DeA has recently opened an office located in Madrid. The GP will also consider co-investments and club deals alongside other private equity and venture capital firms, provided Idea Capital is the lead on the transaction.

People
DeA Capital Alternative Funds – Gianandrea Perco (CEO).