DGPA launches EUR100m distressed fund

Fund

DGPA SGR has launched DGPA Capital II, a EUR100m fund that will target distressed opportunities. The fund has an 8+2 year lifespan. Minimum subscription has been set at EUR250,000 for high-net-worth individuals and EUR500,000 for institutional investors. The GP is set to contribute 1% of the fund. Management fees are 2.5%, while carry and hurdle rates are set at 20% and 6% respectively. The vehicle structure contains both a catch up mechanism and a 'clawback' clause. Studio Legale Bisogni has been retained as legal adviser. The vehicle forecasts a first closing on EUR25m by June this year.

Investors

The fund is being marketed in Northern Italy to financial institutions, corporates and individuals. The investor base of the previous fund consists of banks, pension funds and insurance groups, with Deutsche Bank, Cassa Forense, Fondazione CR Firenze and pension fund ENPAM among the backers. The GP expects close to 80% of the historical investors to contribute to this second fund.

Investments

DGPA Capital II will seek to invest between EUR5-20m of equity per transaction in distressed, non-listed Italian SMEs with enterprise values ranging between EUR20-200m. The fund will invest in all sectors with a particular focus on "Made in Italy" businesses, taking either minority or majority stakes depending on the target. Co-investments will be considered on a case-by-case basis.

People

The fund is managed by Luciano Avanzini, Federico Silva, Massimo Girardi Roberta Benaglia and Angelo Corbosiero. The firm will also increase its team.

Name: DGPA Capital II

Launched: March 2009

Target: EUR100m

Focus: Buyout, growth capital, distressed, mid-market

Contact: Massimo Girardi

Luciano Avanzini

Address

via dei Bossi 6

20121 Milan

Italy

Tel: +39 02 806 241

Fax: +39 02 8901 2321

Advisers

Studio Legale Bisogni (Legal).

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