Quadrivio holds €100m first close for new vehicle

Quadrivio is looking to raise €250m by Q3 this year, involving more investors. The fund will pursue a similar investment strategy to the previous vehicles, focusing on Italian SMEs valued in the €30-100m range. The GP plans to reach majority or controlling positions in around 10 portfolio companies via equity tickets of €10-30m.

The fund, launched in September 2015, will have a 10-year lifespan, following industry standards with regards to management fees, hurdle and carried interest. According to Quadrivio, the fund will use leverage, usually below 4x EBITDA. For the first time, Quadrivio will offer its LPs the opportunity to co-invest.

The firm also manages Quadrivio Fund 2, launched in 2010, which reached its target on €150m in 2010. The vehicle is currently in the divestment phase and has already distributed 87% of the drawn-down capital back to its investors.

Sherman & Sterling is acting as legal adviser on the current fundraising.

Investors
Institutional investors have so far provided 90% of commitments to Quadrivio 3; of these, 35% are international investors (notably English and French) while the remainder are Italian LPs.

For the fund's final close, the firm intends to reach 50% of international investors, including sovereign wealth funds, as was the case for its previous vehicle.

Investments
The fund will invest in the Italian SME sector, which presents attractive pricing relative to other European countries, according to CEO Walter Ricciotti. The fund's strategy is to focus on companies valued at less than €100m with the opportunity to grow internationally and to be divested in SBOs to larger funds.

People
Quadrivio Capital – Walter Ricciotti (CEO); Alessandro Binello (chairman).

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