Investindustrial launches €600m China-Italy Fund

Alessia Argentieri
05 October 2020

Tweet
Facebook
LinkedIn
Google plus
Send to

Private equity firm Investindustrial, alongside China's sovereign wealth fund China Investment Corporation (CIC) and Italian lender Unicredit, has launched China-Italy Industrial Cooperation Fund (CIICF), a €600m vehicle investing in Italian mid-market companies.

Investindustrial is the sole investment manager of the new fund. Its team based in southern Europe will work closely with its local team in China to direct the vehicle's investment process and portfolio management.

Furthermore, the firm will double the size of its China-focused team, which will be strategic in supporting the fund's target companies in their growth plans.

"Italy offers great investment opportunities with solid foundations and clear growth paths globally," said Andrea C Bonomi, managing principal of Investindustrial. "This innovative programme is dedicated to the financial and operational needs of these Italian companies."

Investors
The fund's initial capital has been fully underwritten by Investindustrial, CIC and Unicredit. The vehicle also plans to raise additional commitments in the coming months.

Investments
The fund will make its investments alongside Investindustrial VII, which held a final close on €3.75bn in November 2019, surpassing its €3bn target.

The vehicle targets both lower-mid-market businesses with enterprise values of less than €200m and larger companies at the upper end of the market, with EVs in excess of €500m. It deploys tickets in the €50-100m range for its lower-mid-market deals and of around €350m for its larger deals. It also co-invests with LPs for larger and selective mid-market opportunities.

CIICF will target mid-market companies, primarily based across Italy, with the aim of establishing and accelerating their business development in China. It will have a special focus on the consumer, industrial manufacturing and healthcare sectors.

Unicredit will promote the opportunity offered by the fund through its commercial network in Italy, and its corporate and investment banking offering. Active in China since 1982, Unicredit has an established presence in Beijing and Shanghai.

People
Investindustrial – Andrea C Bonomi (managing principal).
China Investment Corporation – Peng Chun (chair).
Unicredit – Richard Burton (CEO corporate and investment banking).