Ambienta ‘considerably oversubscribed’ on Fund III – exclusive

The fund has a €500m target and will invest in European SMEs that are driven by environmental trends.

Ambienta, the Milan-based private equity firm, is “considerably oversubscribed” for its third fund, Private Equity International understands.

Ambienta III has a €500 million target, according to a source with knowledge of the fund.

The firm raised €323.5 million for its second fund, a 2013-vintage which included commitments from the European Investment Fund, HarbourVest Partners and RobecoSAM Private Equity, according to PEI data. It takes stakes of between €10 million to €50 million in European small- and medium-sized businesses that foster resource efficiency or pollution control, according to Ambienta’s website.

The manager completed three acquisitions in 2017 and sold Italian manufacturer IP Cleaning Group to Tennant Company for €330m in April, having invested just €50 million three years prior. Ambienta’s ownership saw the company save 73,000 cubic meters of water and cut detergent usage by 2,200 tons in 2016 alone.

Fund II is understood to have “top-quartile” returns, the source noted.

It is unclear how much has been raised or when Fund III will close. Ambienta declined to comment on fundraising or performance.

Ambienta – which provides growth capital and management- or owner-buyouts, as well as re-capitalisations – has invested in more than 20 companies in countries such as Germany, France and Switzerland. It has made six exits to date, its website said.

The firm’s portfolio saved 340,000 tons of materials and recycled an additional 37,000 tons in 2016, according to an Ambienta Environmental Impact Analysis. Other environmental impacts included reduced water use, carbon dioxide emissions and landfill.