SSGI launches fund with first closing at EUR60m

01 April 2008

Tweet
Facebook
LinkedIn
Google plus
Send to

Fund

State Street Global Investments SGR SpA (SSGI) has launched TT Venture, a fund dedicated to the technology transfer from universities to companies. The fund has been established with the contribution of various Italian banking foundations, raising EUR60m at first closing.

The fund's term is set at 12 years with a three-year extension. Management fees are set at 2% on the first EUR100m raised for the first eight years. The fees will decrease to 1.5% above this amount. Following the eight-year period, the fees are set at 1.5% of the commitments, not less than EUR500,000. The carried interest is set at 25%, payable on the fund as a whole, with a 5% hurdle.

Minimum subscriptions are set at EUR1m for individuals and EUR5m for qualified investors. The fund has no restrictions and forecasts its final closing in May 2009. No placement agents or legal advisers have been retained.

Investors

The initial subscriptions have come from Italian banking foundations: Fondazione Cariplo (cornerstone investor), Fondazione Cassa di Risparmio di Cuneo, Fondazione Cassa dei Risparmi di Forli, Fondazione Cassa di Risparmio di Modena, Fondazione Cassa di Risparmio di Parma e M.C.P. di Busseto and Fondazione Cassa di Risparmio della Provincia di Teramo as well as from the Chamber of Commerce of Milan.

Investments

The fund will be split with 10% going towards seed capital, 35% to start-up and 40% to development capital with a 15% reserve for investments in international venture funds as a means to establish commercial relations. The fund will invest in biomedicine, agro-food, energy, environmental technologies and materials science/engineering with focus on Italy, although opportunities to invest in the rest of Europe and in Israel could be considered.

The value per transaction will stretch between EUR100,000-3m with the fund acquiring positions ranging between 20-80%. Co-investment possibilities will be assessed on a deal-by-deal basis. The exit strategy will be geared towards IPOs and trade sales. Proceeds cannot be reinvested.

People

The fund is managed by CEO of SSGI Giuseppe Campanella and Mauro Odorico, CIO of the fund.Campanella worked for Akros Finanziaria, within the area of investments in unlisted companies. Between 1992-2000, he led various distressed companies in the electro-mechanic and fine chemical sectors through restructuring phases. He is member of different advisory boards of primary Italian closed-end funds. Odorico is the head of TT Venture's operative team and is in charge of the management of the investment process and investments' monitoring. His background includes experience in aerospace engineering and information technology. They are supported by five professional teams and will create four new analyst positions by the end of the fundraising period.

Name: TT Venture

Target: EUR150m

Launched: December 2007

Focus: Italian venture capital

Contact: Mauro Odorico

Address: State Street Global Investments

Via Mazzini 2

20123 Milan

Italy

Tel: +39 02 7214 7741

Fax: +39 02 7214 7720.