Ambienta reaches final close on EUR218m

01 November 2009

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Fund

Specialised environmental investor Ambienta has reached the final close of its inaugural fund, Ambienta I, on just under EUR218m, below its EUR250m target. As a first-time fund, and first-time team, the GP expressed satisfaction with the funds raised in the current fundraising climate.

The Italy-based vehicle has a lifespan of 10 years and reported a first closing in May last year on EUR123.75m. Minimum subscriptions were set at EUR250,000 and the GP contributed EUR6m to the fund. Terms and conditions with respect to corporate governance, management fees, carried interest and hurdle rate reflect market practice. Labruna Mazziotti e Segni acted as legal adviser.

Investors

Intesa Sanpaolo - committing EUR40m - is among the 20, mostly Italian, financial institutions contributing to the fund, which also includes seven insurance companies and five pension funds. Among the international investors are the Macquarie Clean Technology Fund I, environmental funds-of-funds and Doughty Hanson.

Investments

In 2008, Ambienta I acquired a majority stake in Italiana Pellets, which produces solid biofuel used to generate energy and heat, and acquired a minority stake in ICQ Holding, a renewable energy power generator in Italy, committing around 15% of the fund's available capital to these first two transactions.

The fund expects to carry out 10-15 investments over the five-year investment phase, aiming to invest 80% of its funds in Europe and the remaining in the rest of the world. It aims to provide investors with a diversified exposure to the worldwide environmental business in its widest definition. Emphasis will thus be given to projects in the areas of renewable energy sources, energy efficiency, pollution reduction, water, waste management and recycling. The vehicle will invest an average equity ticket between EUR10-30m, primarily in growth capital and buyouts keeping leverage below the 3x EBITDA level. The fund also has the possibility of investing a maximum 10% of the fund in venture capital projects and another 20% in listed companies. Co-investments are not part of the core strategy, but could eventually be considered on a case-by-case basis. It is worth mentioning LPs have shown great interest in co-investing.

Name: Ambienta I

Closed on: EUR217.5m October 2009

Target: EUR250m

Focus: Global, environmental

Contact: Mauro Roversi, mr@ambientasgr.com

Address: Ambienta SGR

Via Larga 2

20122 Milan

Italy

Tel: +39 02 7217461

Advisers

Labruna Mazziotti e Segni (Legal).