IGI holds €170m final close for sixth fund

Alessia Argentieri
29 July 2020

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Italian GP IGI Private Equity has held a €170m final close for its sixth fund, IGI Investimenti Sei, surpassing its €150m target.

The fund was launched at the beginning of 2018 and held a €100m first close in November 2018 and a €140m second close in October 2019.

Law firm Di Tanno Associati advised IGI on the fundraising.

The vehicle is larger than its predecessor, IGI Investimenti Cinque, a buyout fund formerly known as Arca Impresa Tre and inherited from Arca Impresa Gestioni when IGI acquired the GP in September 2012. IGI Investimenti Cinque held a final close on €93m in March 2013.

The fund has generated a 3.8x return and 37% IRR so far, through a combination of EBITDA increments, targeted M&A operations, deleveraging and consolidation of the portfolio companies.

IGI Investimenti Cinque recently sold its stake in Italian telecoms cable manufacturer Fimo to Wise Equity.

Investors
IGI Investimenti Sei's LP base is mainly composed of Italian and international institutional investors, including several pension funds and insurance companies. Around 65% of LPs from previous vehicles re-upped to this new fund.

Investments
The fund acquires majority or controlling stakes in Italian companies with a presence in niche markets and export-driven business models, operating in industrial B2B and automation. It targets businesses with revenues between €50-300m and deploys equity tickets in the €5-20m range.

The fund bought a majority stake in pre-form plastics manufacturer Nuovaplast in January 2019. The transaction was made via a newco called Clio, which bought 74.7% of Nuovaplast, while entrepreneur Roberto Tomasoni retained the remaining 25.3% in the business. In addition, Banca IFIS, Crédit Agricole and BPER Banca provided a debt package to support the deal.

More recently, the vehicle acquired a 42% stake in Italian test stands specialist Test Industry, while previous backer Route Capital Partners reduced its stake from 32% to 23% and investment company Equilybra from around 30% to 18%. The company's founders also reinvested in the business and retained a 17% stake.

People
IGI Private Equity – Angelo Mastrandrea (partner).