PM & Partners closes second fund on EUR340m

01 February 2009

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Fund

PM & Partners has closed its second fund on EUR340m, EUR40m above its initial target. The fund was launched in September 2007, reaching a first closing in November 2007 and a final closing in October 2008. The fund, based in Italy, has the usual 10+1+1 lifespan. Minimum subscriptions were set at EUR5m with management fees, carry and hurdle at industry standards. The vehicle has no restrictions outside the traditional ones. JPMorgan Cazenove acted as placement agent for the fund.

Investors

Sixty percent of the commitments came from foreign investors, mostly US, UK, German and Swiss pension funds and funds-of-funds, with Italian investors, namely banks and insurance companies, contributing the other 40%. Institutional investors included Mediobanca, Generali, Intesa Sanpaolo, Veneto Banca and the Ubi Banca group, all hailing from Italy, as well as UK-based Prudential and US-based Verizon Pension Fund. Family offices and private investors represented 10% of subscriptions.

Investments

PM & Partners II made its first acquisition, a 65% stake in floor heating specialist Emmeti di Fontanafredda, in August 2008. The fund has a generalist approach and will invest in Italian companies (or companies with strong Italian ties) with a turnover of EUR50-200m. The investors plan to carry out 8-12 deals, investing between EUR20-50m equity in each. The vehicle will focus on family businesses and particularly those in anti-cyclical sectors. Currently there are several projects in progress but H1 2009 may be slow as investors wait on valuations to adjust.

People

The fund is managed by Andrea Mugnai, Francesco Panfilo (co-founders of the firm) and Massimo Grasselli. Mugnai was appointed investment director at ABN AMRO Capital Investments (Italy) in 1998 and actively contributed to the development of the bank's private equity activities. Prior to this, he worked at SOFIPA for six years heading the leveraged/management buyout team.

Panfilo previously worked as Managing Director at ABN AMRO Capital Investments (Italy) from 1998 to 2000, promoting the Bank's private equity activities in Italy. From 1994 to 1998 he was CEO of SOFIPA which he joined in 1987 as director, and where he completed numerous successful transactions. Prior to this he worked at BNL, where he was responsible for industry and infrastructure financing with BEI financing (energy and technology innovation).

Grasselli joined PM & Partners from Centrobanca, where he was deputy general manager in charge of private equity and CEO of Centrobanca Sviluppo Impresa SGR, which he joined in 2001. In 1998, he made partner in Palamon Capital Partners in London and was actively involved in fundraising as well as in the execution of deals. Between 1991-1998 he held high offices in Lawson Mardon Group and Morningside Italia. Grasselli has also worked as a management consultant in Arthur D. Little, McKinsey & Co and Bain & Co, where he was made partner in 1990. They are supported by a team of seven other professionals with experience in private equity and investment banking.

Name: PM & Partners II

Closed on: EUR340m

October 2008

Focus: Buyout, growth capital

Contact: Francesco Panfilo

Andrea Mugnai

Address: PM & Partners

Via Campania, 59

00187 Rome

Italy

Tel: +39 06 420 3621

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