Consilium launches €100m fourth fund

The GP had originally planned to launch a €200m fund, but following the coronavirus outbreak decided to reduce the target to €100m. The vehicle has already held a first close and expects to ink its first deal in the coming weeks. It plans to hit its target in a final close in 2021.

"The coronavirus pandemic has impacted PE portfolios worldwide while making fundraising more arduous," Stefano Iamoni, CEO of Consilium, told Unquote. "This is why we decided to launch a smaller vehicle than initially planned, which will be raised more quickly and will be able to support a small number of attractive Italian SMEs. Subsequently, once the crisis is over, we will focus on a new larger fund. In the meantime, we have already identified several interesting investment opportunities for our fourth fund, targeting companies that have proven resilient to the crisis and with high-growth potential."

Consilum is also managing the portfolio of its third fund, Consilium Private Equity Fund III, a €145m fund that is now around 90% deployed. The vehicle is currently invested across seven companies: clothing brand Navigare, acquired in January 2015; machinery manufacturer Faccin, bought in June 2016; stone-cutting machines maker GMM, also purchased in June 2016; sneakers specialist Gruppo Manifatture Italiane, a buy-and-build platform established in October 2018; sportwear specialist Macron, acquired in March 2019; baked goods maker Dino Corsini, bought in March 2019; and frozen meals producer Gelit, acquired in May 2019.

Investors
The fund plans to build a diversified investor base composed of local family offices and institutional investors, such as Italian pension funds, European funds-of-funds and public institutions. It will probably include Fondo Italiano d'Investimento (FII) and the European Investment Fund (EIF), which have both backed Consilium's previous vehicles.

Iamoni said: "We have a strong pool of loyal investors, primarily family offices and high-net-worth individuals, that have invested in our funds since inception. In addition, we expect to attract institutional investors both domestically and abroad, as we did with previous fundraisings."

The vehicle has already raised capital for a first close, primarily from Italian pension funds, and expects to hold a rapid fundraising concentrated primarily in the first quarter of 2021.

Investments
Consilium Private Equity Fund IV intends to make five investments in Italian mid-market companies with enterprise values in the €40-80m bracket and generating EBITDA of €5-20m.

The fund has a generalist approach, with a special focus on the food and beverage, fashion, mechanical engineering and automation sectors. It targets majority stakes in buyout acquisitions of family-held private companies.

The vehicle will deploy equity tickets in the €15-20m range. "Despite the smaller size of our new fund, we will continue to provide the same equity tickets that we have deployed before, with our larger third fund," said Iamoni. "We intend to target the same segment of the Italian market, which is the most attractive and dynamic, is very fast-growing and is the richest in opportunities."

The fund will make its first investment in the coming weeks, acquiring an Italian company that operates in a niche of the consumer sector.

People
Consilium Private Equity – Stefano Iamoni (CEO).

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• Topics
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• Southern Europe
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• coronavirus