Idea Capital Funds sgr, an Italian managment company of equity funds owned by de Agostini Group, and Bayside Capital (part of HIG Capital Group) announced the first closing at 260 million euros for their 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 Italian private equity firm chaired by Roberto Saviane said that Idea CCR is the first Italian DIP (Debtor-in-Possession) financing fund. Idea Capital has been working at the project for more than one year together with Hig Capital (see here a previous post by BeBeez).
The veichle is structured as an umbrella fund. One sector is reserved to loans bought from banks while the other sector is reserved to new finance provided by investors.
Targetti Sankey, Dynamic Technologies, Cartiere Pigna, Util Industries, Sinterama, Scandolara , Prime holding Tecnica and Clerprem are the companies whose debts have been sold to the fund by seven Italian banks, MF-Milano Finanza writes. Banks sold those credits for a total 180 million euros gross value and received stakes in the fund as an exchange. Banks involved are Unicredit, Bnl, BnpParibas, Banca Popolare di Vicenza, Montepaschi, Banca Popolare di Milano and Biverbanca.
As far as the newe finance is concerned (the remaining 80 million euros), this was provided by Hig Capital (40 millions), Dea Capital (a significant figure) and some family offices. The fund may reach a 500 million euros target, involving more banks and more new finance.
The fund will be managed by Francesco Gori (industrial restructuring) and Vincenzo Manganelli (financial restructuring). The advisory board will be chaired by Dante Roscini, while the investment committee will be chaired by Massimo di Carlo and Raffaele Legnani (managing director head of Hig Italia) and Giuseppe Mirante (managing director at Bayside Capital in London), will be members of the investment committee.
Idea Capital Funds was supported by CBA for the acquisition of the loans by the banks and the fiscal issues of the deal, while Gianni, Origoni, Grippo, Cappelli & Partners advised Idea Capital in structuring the fund and selling stakes to investors. Banks were supported by Bonelli Erede law firm and Hig was advised by King & Wood Mallesons on legal issues.
