Equita targets €140m for Italian SME fund

The fund will target Italian SMEs and is expected to raise €140m. It will have a lifespan of eight years starting from the date of first closing, and an investment period of four years. The targeted gross IRR is set between 12% and 14% per year, calculated over the entire life of the fund and representing a multiple on invested capital of around 1.8x.

Cordusio SIM supported Equita during the structuring phase of the vehicle and will act as first distributor of the fund to its clients. As an Italian long-term individual savings plan fund, Equita Smart Capital – ELTIF will offer tax-exemptions including from capital gains, financial income taxes, inheritance tax and a tax-credit of up to 20% of the amount invested in 2021 to cover for any capital losses.

Investments
Equita Smart Capital – ELTIF will mainly invest in Italian private SMEs, as well as in listed companies with a market capitalisation below €500m. Around 60-70% of the fund's assets will be invested in private companies, 20-35% will be earmarked for public equity, and the remaining 5-10% will be invested in listed bonds.

For its private equity compartment, the fund will mainly invest in qualified minority shareholdings, and selectively in majority deals, primarily through capital increase transactions. The fund will also consider potential co-investments to back larger deals.

Investors
The fund is available for subscriptions to both professional investors and individual investors with an "adequate financial profile", with a minimum investment set to €10,000, according to a statement. Equita Capital and its management team will invest in the vehicle.

People
Equita Capital – Matteo Ghilotti (CEO).

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