The European Investment Fund (EIF) has signed an agreement with Italy’s asset manager Springrowth sgr to subscribe 50 million euros in the Fondo di credito diversificato per le imprese , a closed-end alternative investment fund, reserved for professional investors registered in Italy and focused on direct lending to SMEs, with a fundraising target of 500 million euros (see here the press release).
Pursuing a strategy focused on risk mitigation based on significant portfolio diversification the fund aims to originate at least 100 investments both medium to long-term loans, and corporate bonds (including mini-bonds) with a focus on Italian SMEs but being able to invest up to 20% of its assets even in France, Germany, Austria, Benelux, Spain an Portugal.
Springrowth’s business model is based on a sharing approach with both the banking system and the financial intermediaries in a logic of cooperation while respecting each other’s independence and roles. That is why the fund will be able also to invest in performing loans on the secondary market.
Springrowth sgr was founded in 2016 by five partners, all former bankers with a sound background in industrial credit: ceo Massimo Di Carlo (former Mediobanca), credit treasurer Gianluca Oricchio (senior advisor Moody’s), chief investment officer Alessandro Ravogli (former Citi, Unicredit, Intesa) and not executive parnters Andrea Moneta (senior advisor for Italy to Apollo private equity firm) and Andrea Crovetto (Epic sim’s ceo).
Mr. Di Carlo told MF Milano Finanza that the new fund will invest in senior secured e unsecured medium-long tern loans with an amortizing structure so that it will have a 750 million euro dry powder as the fund will distribute coupons as soon as they are going to be paid while will reinvest the reimbursed capital for a 2 years’ time. The fund will target a 3.5-3.8% groos yield as more than 70% of its assets will be invested in floating rate loans which are going to benefit of the expected market rates increase on euro assets in the next few years.
The asset manager said that its Board will be made by the three managing partners and by two non exectuvie directors or chairman Alfonso Querejeta (former Genral Secretary of the European Investment Bank) and Carlo Bonomi (chairman of Milan’s entreperneurs association Assolombarda).
A first closing of the fund at 250 million euros is expected in the next few months. The fund managers told BeBeez that the fund will ask for fees to its investors only on the deployed capital and that fees will be around 0.7% of the invested assets.
