Springrowth closes debt fund on €417m, plans new €200m rescue fund

The fund was launched at the beginning of 2018 with an initial €500m target and held a first closing on €210m in October 2018. It has invested €160m so far and targets an IRR of around 4-5%.

FCDI works in partnership with Italian and international banks in the origination process of the deals. It has so far completed 38 transactions, including 28 across Italy, benefiting from its partnerships with 15 Italian banks such as Banco BPM, UBI Banca, BNL, Intesa Sanpaolo and Unicredit. The remaining 10 deals were inked in the rest of Europe, in partnership with Credit Agricole, BNP Paribas, Societe Generale and Deutsch Bank.

The GP is also planning to launch a Rescue Financing Fund with a €200m target by the end of the year, to support Italian companies in distress and help them recover during the aftermath of the coronavirus outbreak.

Springrowth was established in 2016 by co-founders Gianluca Oricchio and Massimo Di Carlo and was acquired by Muzinich in April 2018.

Investors
The European Investment Fund and Italian state-backed Cassa Depositi e Prestiti are the fund’s anchor investors. They committed €50m and €80m respectively. The remainder was raised from insurance companies, pension funds and family offices.

Unquote understands that the fund’s LP base includes insurance companies such as Poste Italia, which committed €100m, Aviva, with a €50m ticket, and Cattolica Assicurazioni, as well as Italian pension funds including Inarcassa, Enpam and Enpav.

Investments
The fund deploys tickets in the €3-15m range and plans to make around 100 deals. 

It targets European companies generating EBITDA of at least €3m and revenues in the €30-150m bracket.

"We consider it essential to build a diversified and resilient portfolio, avoiding excessive concentration," Springrowth CEO Gianluca Oricchio told Unquote. "This allows us to be prepared for emergency events, such as the coronavirus crisis."

People
Springrowth -  Gianluca Oricchio (CEO, co-founder); Massimo Di Carlo (co-founder).

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• Topics
• Funds
• Debt
• Southern Europe
• Italy