Quadrivio Capital has held a first close on its third mid-market fund on €100 million, according to a statement from the firm.
Quadrivio Private Equity Fund 3 officially launched in September 2015 and is seeking €250 million to invest in Italian small and medium-sized businesses with an enterprise value of €30-€100 million. The fund will be looking to acquire around 10 companies, writing cheques of between €10 million and €30 million mainly for majority or controlling positions.
Quadrivio said it received strong support from both existing and new institutional investors, including pension funds, funds of funds, banks, insurance companies and private investors.
“With this third mid-market buy-out fund we will continue to support Italian SMEs in their growth and international development,” said Alessandro Binello, Quadrivio chairman. “To date we have completed 16 investments, 8 add-on acquisitions, mainly in the US, and have realised 11 exits.”
The vehicle’s predecessor, Quadrivio Fund 2, launched in 2010 with a €150 million target. It has since distributed 87 percent of drawn down capital back to investors.
Remaining investments in vehicle include restaurant group Sebetto, which operates under five brands including RossoPomodoro; frozen bakery business Forno d’Asolo; fresh filled pasta producer Raviolificio Lo Scoiattolo; and hygiene product components producer Pantex International.
Quadrivio has realised five exits in the last two years, which have delivered an average multiple of 2.2x and an internal rate of return of 32 percent.
In January 2015 the firm offloaded its investment in Italian shoe retailer Pitta Rosso, which it acquired in 2011, in a deal generating a 3x return and an IRR of 37.3 percent. In February it exited children’s retailer Bimbo Store, realising a 2.4x return and an IRR of 23.4 percent. In November the firm netted a 2.1x return and a 32.2 percent IRR through the sale of Suba Seeds, a producer and distributor of organic seeds which it acquired in December 2012.
Quadrivio is also in market with its latest venture offering, TT Venture 2, which is seeking €100 million to invest in Italian companies in start-up or development phase in bio and hard technology areas, according to the firm’s website.
Quadrivio is far from alone on the fundraising trail in Italy. More than 35 Italy-headquartered funds are currently in market, 80 percent of which are targeting €300 million or less, according to PEI Research & Analytics.
Sino-Italian firm Mandarin Capital Partners recently held a final close on its second fund at less than €200 million, less than half of its revised €500 million target, which had been slashed from €1 billion after its launch in 2013 due to a revision of its investment strategy. Managing partner Alberto Forchielli told Private Equity International that it was tough to raise money in Italy as Italian investors had been heavily affected by the financial crisis.
Meanwhile Clessidra, the largest player in the Italian market, is still in market with its €1 billion Fund III, which launched in 2014 and held a €400 million first close in January 2015.