Turnaround manager Springwater adds Milan office – exclusive

The special sits investor is on the hunt for new sources of dealflow in Italy and has hired senior executives from financial services firm J Hirsch & Co.

Springwater Capital, a pan-European turnaround manager, is set to ramp up deals in Italy’s tourism and TMT sectors with the opening of its Milan outpost.

Heading up the office are two new hires: Fabrizio Rescigno and Jean-François Aron, who have joined as partner and senior advisor, respectively, and will source investments for the firm, according to someone familiar with the matter.

Rescigno joins from J Hirsch and Co, where he was partner. Aron co-founded J Hirsch and was previously a non-operating partner at Style Capital SGR, a fashion-focused private equity firm in Milan.

Milan brings Springwater’s office count to four including Madrid, Brussels and Luxembourg.

The firm plans to invest in overlooked and complex investments in Italy that have emerged because of broad market dislocations or cyclical situation, the source noted. It is also understood to be exploring investment opportunities in Benelux.

Springwater invests on a deal-by-deal basis, on an average hold period of 2.9 years. The firm has exited 20 investments over the last ten years, generating more than 70 percent net internal rate of return and in excess of 5x net investment multiple, according to the source.

Its portfolio holds seven investments. It recently completed an add-on acquisition of Mapa Tours for its Spanish tourism platform Wamos Group. Springwater also exited its investment in luxury travel company NUBA in December.

Springwater declined to comment.