Unipol launches first closed end fund Preludio

01 May 2008

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Fund

Unipol Banca has moved into the realm of private equity with Unipol Private Equity, announcing the launch in February 2008 of its first fund, Preludio. The fund, still pending authorisation, is in its pre-marketing stage. It is based in Italy and set at a target of EUR150m with a EUR100m floor. It has a lifespan of 10 years with a three-year extension period. The minimum subscription is EUR50,000 with the GP contributing 1% of the fund. Management fees have been set at 2% per annum with a hurdle of 6.5% per year. The carried interest is to be paid on a deal-by-deal basis.

The fund cannot invest in firearms, tobacco, adult entertainment, cloning or real estate.

Unipol Merchant, the investment bank of Unipol Group, will act as the advisory company to the fund; fees will amount to 0.85% per annum (on an equity commitments base).

Investors

Unipol Private Equity operates with the support of investment bank Unipol Merchant and is wholly controlled by Unipol Banca. The fund is addressed to institutional investors with shares in, or doing business with, SMEs.

Investments

Preludio is a generalist vehicle that will target Italian expansion (60%) and LBO (40%) deals. Transactions will range between EUR5-20m at a target rate of three per year with the aim to acquire significant minority stakes. The fund does not exclude the possibility of majority stake acquisitions, especially if carried out on a co-investment basis. The core exit strategy consists of either the IPO or the trade sale route. Proceeds from exits cannot be reinvested.

People

Massimiliano Naglia is the general manager of the fund and Luca De Bartolomeo is the senior investment manager. Formerly, Naglia was senior investment manager at IMI Investimenti Private Equity Fund (EUR100m). De Bartolomeo has experience in corporate and transaction finance at Deloitte and KPMG. The fund expects to create two investment analyst positions at the time the fund closes.

Name: Preludio

Target: EUR150m

Launched: February 2007

Focus: Italian generalist

Contact

Luca De Bartolomeo

Address

Unipol Private Equity

Piazza Della Costituzione, 2/2 degs

40128 Bologna

Italy

Tel: +39 051 631 8210