Idea Capital Funds sgr, an Italian managment company of equity funds owned by de Agostini Group, and Bayside Capital (part of HIG Capital Group) launched Idea CCR (Corporate Credit Recovery), a new private equity fund which will invest in Italian mid-sized enterprises in distressed situations aiming to help them restructure and turnaround, and consequently to help banks maximize the recovery of their original loans (see here the press release).
The new fund will be managed by Idea Capital sgr (chaired by Roberto Saviane), while Bayside Capital (HIG Capital’s managing director in Italy is Raffaele Legnani) will act as anchir investor, providing the new cash which is needed ir order to finance the financial and industrial recovery of the portfolio companies.
Idea CCR is currently in discussions with a number of leading Italian banks which are expected to contribute to Idea CCR a portfolio of medium and long term corporate loans. Currently, such portfolio is expected to have a nominal value of around 250 million euros at closing, but over 12 months further loans could be contributed up to a total amount of 500 millions.
In exchange for such contributions, the respective banks will receive notes issued by Idea CCR. Idea CCR is also expected to raise funding from HIG Bayside and other investors up to 20% of the nominal value of the contributed portfolio, which will be made available to Idea CCR in order to support the financial and operational restructuring of the distressed debtor companies.
The operating governance of the companies is expected to be controlled by Idea CCR through restructuring agreements, and will be managed by an experienced team led by Francesco Gori, former ceo of Pirelli Tyre and Managing Director of Pirelli & C. and by Vincenzo Manganelli for the financial restructuring process.
Idea Capital Funds sgr has been working on the project for over an year (see here a previous post by BeBeez) . “New equity will be injected by third investors who will subscribe stakes in the the new funds managed by Idea sgr”, ceo Mario Barozzi said then to MF-Milano FInanza. “Credit contributions from the banks will represent a 70-75% stake in the funds whil new equity will be a 25-30% stake, New equity will have priviliged treatment in the fund (i.e. drawdowns will be paid before)”, Barozzi concluded.