Partners Group, the Zug-headquartered fund manager, is subsuming its Italian partner, Perennius Capital Partners. Financial details were not disclosed.
Both groups have announced the decision to integrate their investment and client services in Italy, six years after Perennius became Partners Group’s exclusive route to market in the country.
The firm, which was the result of a mutual agreement between Partners Group and Italian merchant bank Poli e Associati in 2007, has since sought to tap local investor demand for the asset class. Its founders say that the partnership has been successful in honouring its mandate, with Perennius allowing the pair to source a number of primary and secondary deals during the period.
These have included an investment in one of Europe’s largest solar power plant in the Rovigo province, a joint venture with energy buyout specialist First Reserve. The firm also provided mezzanine financing during the acquisition of Mercury Pharma and Amdipharm, two UK pharmaceuticals group bought by Cinven last year, as part of its direct debt investment activity.
“We look forward to successfully continuing to expand our activities in Italy for the benefit of our common client base, enabling them to invest through a global investment platform. We believe the Italian market continues to offer compelling opportunities in specialized sectors,” commented Marcel Erni, co-founder and chief investment officer of Partners Group, in a statement.
The move contrasts with the recent decisions by a number of large international private equity players to exit the Italian market. Advent International closed its Milan office in March, as part of a shake-up that saw it significantly reduce its presence in Southern Europe. Apax Partners shut down its Italian franchise at the end of last year.
The integration of Perennius’ activities will bring Partners Group’s total offices around the world to 16. Still subject to regulatory approval, the deal is expected to close in the coming months.