21 Investimenti hits hard-cap on Fund III

The Italian branch of 21 Partners collected €343 million for the vehicle, which has already made two investments.

21 Investimenti, the Italian branch of 21 Partners, reached final close on its third vehicle on its €343 million hard-cap, according to a statement from the firm.

21 Investimenti III launched in 2015 with a target of €300 million and held a first close in February 2015 on €220 million.

The fund is larger than its predecessor, a 2008-vintage vehicle which closed on €280 million. The vehicle attracted commitments from both existing and new investors, with the majority of the capital raised in Europe, it is understood.

In line with its predecessors, Fund III will focus on control growth investments in Italian SMEs with enterprise values of between €50 million and €200 million, targeting companies with “strong positioning in attractive markets and compelling perspectives for growth”, the firm said.

The vehicle has already completed two investments, backing SIFI, which develops, produces and distributes pharmaceutical treatments, diagnostic instruments and surgical equipment for eye care, and Poligof, which produces and sells backsheet film for hygienic disposable products.

21 Partners runs two other country-specific programmes: the 21 Centrale funds in France and the 21 Concordia funds in Poland.

In September 21 Concordia held a final close on its debut fund on its €100 million target, as reported by Private Equity International.

The fund includes a GP commitment of €1 million from the four managing partners, and has two cornerstone investors: the European Bank for Reconstruction and Development (EBRD) and the European Investment Fund (EIF). The fund is also backed by Polish state-owned bank Bank Gospodarstwa Krajowego (BGK), which has set up a fund of funds to invest in SMEs through private equity funds, as reported by PEI.

In January 21 Concordia completed its third investment, acquiring a majority stake in Polish high-end childrenswear company Wójcik. The other investments in the fund are Polish debt collection and receivables business EGB and discount clothing chain TxM.

The successful closings of 21 Investimenti III and 21 Concordia will likely boost momentum for 21 Centrale Partners V, which is currently in market targeting €400 million.

Its predecessor, the 2011-vintage, €380 million 21 Centrale Partners IV, made its final investment last September, acquiring operational marketing business Impact. There is some capital remaining in the fund for follow-on acquisitions, it is understood.

“Impact completes the investment program of our fourth fund, which has built a solid and balanced portfolio already realising two exits and a dividend recapitalisation,” 21 Centrale founding managing partner Gérard Pluvinet said in a statement at the time.

“We are now focused on preparing selective acquisitions for portfolio companies and new investment opportunities for 21 Centrale Partners V.”