Xenon collects €150m for Fund V

The Italian lower mid-market firm hit the hard cap for its first institutional fund.

In its first institutional fundraising effort, Italian private equity firm Xenon Private Equity has corralled commitments totalling €150 million. The firm surpassed its initial target of €130 million.

The firm began fundraising for the lower mid-marketed fund in November 2008. European limited partners to come on board for Xenon V include Finnish insurance group Pohjola, Swiss private bank LCF Rothschild and various European funds of funds such as NordKB, RWB and Capvent.

From the US, Massachusetts Pension Reserve Investment Trust and Indiana State Teachers’ Retirement Fund have both made commitments, the firm said in a statement.

This is the first fund raised by Xenon since the firm spun out from Swiss private bank Arner Bank. The firm’s first four funds were bankrolled by high net worth individuals and family offices. The team of six partners has been making private equity investments in Italy since 1990, chief executive officer Danilo Mangano told PEO in an interview in July this year.

From its base in Milan, the fund will make investments in Italian businesses with an enterprise value of between €20 million and €50 million, and expects to make between 12 and 15 investments writing equity tickets of between €7 million to €10 million per deal.

SJ Berwin advised on the legal structure of the fund.