Presidio, Indigo join Italian syndicate

Soros-backed Presidio I has completed its first transaction, investing alongside Indigo Capital in an Italian vinyl finish company sponsored by PM & Partners.

Presidio I, the first stand-alone mezzanine fund dedicated to the Italian market, has completed its first transaction, in a syndicate led by UK mezzanine fund Indigo Capital.

Presidio I, which received €50 million in commitments at a first close in March this year, and Indigo have invested €12 million ($14.5 million) in Alfatherm, an Italian company that makes PVC/vinyl finishes.

Presidio, who sourced the deal, put up €3 million, with the remaining €9 million invested by Indigo from its €475 million Fund IV. Director Richard Collins and investment manager Martin Hook led the transaction for Indigo.

Alfatherm was acquired last month by Italian private equity firm PM & Partners which invested from its €215 million Emerald fund. PM bought Alfatherm from Banc of America Capital Partners Europe, the European private equity arm of Banc of America, for an undisclosed sum.

Presidio I was launched earlier this year by Francesco Gallotti and Claudio Casneti and is backed by institutions including Soros Fund Management LLC, the Mellon Financial Corporation and a number of Italian banks. The fund had an initial final target of €100 million.

The news of Presidio’s first transaction comes while Italian Mezzanine, another Italian subordinated debt fund, is aiming to hold a first close. Set up by Italian banker Roberto Liguori, the fund is also aiming for a final close of €100 million.

The transaction is Indigo’s fourth deal of the year, having completed two transactions in the UK and one in Germany. Most recently, Indigo provided mezzanine funding to Sorex, a UK-based maker of pest control products in a sponsorless transaction in June.

While investing alongside financial sponsors in European private equity backed transactions is Indigo’s main area of focus, the firm invests approximately 25 percent of its capital in so-called sponsorless deals.