The BeBeez Private Debt, direct lending and fintech lending Report 2019 o (find out here how to subscribe to BeBeez News Premium for just 20 euros per month) showss that the market grew a lot in Italy in 2019, especially thanks to fintech platforms, reaching 12.2 billionn euros from 10.8 billions in 2018. As for private debt isssues, the report includes all issues by Italian unlisted companies and their foreign subsidiaries such as buyout vehichles. In 2019. BeBeez counted 180 issues for a total value of approximately 6.420.4 billion euros. of which 15 issues over 100 millions for a total value of 5.466 billion euros. no issues between 50 and 100 millions and 165 issues up to 50 millions. for a total value of 954.3 millions. Of these smaller issues. 23 are part of so-called basket bond transactions. To that figure must be added 4.5 billion euros in direct lending or purchases of loans by funds and other 1.2 billion euros between invoice financing and medium/long-term lending through fintech platforms.
Frigiolini & Partners Merchant and Banca Finint are the arrangers that concluded the highest number of Italian firms’ minibonds issuances worth below 50 million euros in 2019, said the report of the School of Management of Milan Polytechnic University Minibond Observatory (download here the Italian-written report that the team of Giancarlo Giudici produced) (see here a previous post by BeBeez). Unicredit leads the table for the value of issues that is of 227.88 millions, (128.88 million from captive issuances) ahead of Banca Finint (190.44 million). Between the birth of the minibond market in Italy and the end of 2019, 536 Italian companies placed 801 minibonds worth below 50 million, said the Observatory. The issuers raised a cumulative amount of 5.5 billion for net resources of 4.75 billion.
Anima sgr is about to launch a private debt investment vehichle that Philippe Minard and Andrea Cappuccio will lead (see here a previous post by BeBeez). Both the managers are seasoned professionals for the mezzanine debt sector. Minard and Cappuccio previously worked for Emisys Capital, a fund that was born in October 2013 out of the merger of AF Mezzanine with Mezzanove Capital. Minard also worked for Capzanine. Marco Carreri is the ceo of Anima. Sources said to BeBeez that Anima already requested the authorization for the launch of such product to Bankitalia. Anima also announced the appointment of Fabio Fois for building an in-house research team. Fois, who previously worked at Barclays, will report to Filippo Di Naro, Anima’s CIO and vice-COO. Stefania Peveraro, the chief editor of BeBeez, detailed about the private market products for private banking clients in her book “Private Capital. Esperienze e soluzioni. Ecco perché la finanza alternativa funziona” (click here for free download) of which EdiBeez is the publisher.
Unicredit Private Banking and Amundi are placing an Eltif (European Long Term Investment Fund) for allowing clients with resources of 1 – 2 million euros to invest in private debt over a 7-8 years (See here a previous post by BeBeez). Unicredit’s wealth management unit Cordusio sim manages assets of super-affluent clients (resources of 5 million and above) and in March 2019, it launched Firstlight Middle Market Eltif together with Muzinich & Co. Stefania Peveraro, the chief editor of BeBeez, detailed about the private market products for private banking clients in her book “Private Capital. Esperienze e soluzioni. Ecco perché la finanza alternativa funziona” (click here for free download) of which EdiBeez is the publisher. Sign up here for BeBeez newsletter about Private Debt and receive all the last 24 hours updates for the sector.
Codess Sociale issued a Milan-listed social minibond for 10 million euros (see here a previous post by BeBeez). Cdp acted as anchor investor through the subscription of 5 million. Such minibond has a 7 years term and pays a floor coupon of 3.85%. In July 2019, Codess Sociale issued a 5 million social minibond that Unicredit entirely subscribed. Codess has sales of 150 million (133 yoy) with an ebitda of 9.21 million. Gruppo Codess will invest the raised proceeds in its organic development, said COO Luca Omodei.
Funivia Col Margherita issued a 500k euros minibond due to mature in 2029 that Mediocredito Trentino Alto Adige subscribed (see here a previous post by BeBeez). The company will invest these proceeds and a loan that received from Banca per l’Impresa for building Rifugio InAlto, a cableway stop. Mauro Vendruscolo is the chairman of Funivia Col Margherita. Mediocredito Trentino Alto Adige advised and subscribed the issuances of Casa di cura Villa Regina di Arco, Pro.Ges Parma, Funivie Seggiovie San Martino, Innova, and AreaDerma. Such transactions are part of an agreement that the bank made with local entrepreneurial association and institutions for allocating 10 million to the issuance of minibonds of local SMEs. In December 2019, Mediocredito Trentino subscribed part of a 30 million minibond that GPI, an IT company that listed on Milan market after the business combination with the Spac Capital for Progress 1.
SV Noleggio, an Italian company for the rental of refrigerated vehicles, issued a 5 million euros minibond that Anthilia Capital Partners subscribed (See here a previous post by BeBeez). The maturity date of the bond is 10 February 2026 with a 5.25% coupon, an amortizing reimbursement with a 24 months pre-amortisation period. Salvatore Vaccaro founded SV Noleggio in 2012. The company has sales of 21.4 million with an ebitda margin of 18.8%. Vaccaro said that the company will invest such proceeds in its organic development. Sign up here for BeBeez newsletter about Private Debt and receive all the last 24 hours updates for the sector.
Intrum Italy is holding exclusive talks for acquiring the credit management unit of Milan-listed Cerved Group (see here a previous post by BeBeez). Cerved reportedly hired Mediobanca in September 2019 for exploring options for Cerved Credit Management (CCM). The asset with an enterprise value of 400 million euros (6.5xthe 2019 adjusted ebitda of about 60 million) attracted the interest of Credito Fondiario, Bain Capital and doValue. In 3Q19, CCM posted a turnover of 128 million (while Cerved’s revenues are of 325.9 million) with an ebitda of 44.8 million (142.9 million). Earlier in January, Cerved Group paid 43.25 millions for the remaining 50.1% of Quaestio Cerved Credit Management, the vehicle through which Quaestio Holding and Cerved acquired from Mps in 2017 Juliet, the platform for the vendor’s distressed credits. Intrum is born in June 2017 out of the merger of Norway’s Lindorff (an asset of Nordic Capital) and Swedish Intrum Justitia. Intrum Italy is a joint venture between Intesa Sanpaolo (49%) and Intrum (51%) whose chairman is Giovanni Gilli and the ceo is Marc Knothe. Intrum previously acquired in Italy the NPL platform of Intesa Sanpaolo, assets of CAF in December 2017 from Lone Star, who also sold a 370 million worth portfolio of Npls, Gextra in May 2017 from Italfondiario and the founder Francesca Carafa, and Cross Factor in 2016.
Axactor Italy, the Italian subsidiary of Oslo-listed credit manager Axactor, posted a turnover of 25.1 million euros in 2019 (+124% yoy) (see here a previous post by BeBeez). The company’s revenues for 4Q19 have been of 8.3 million (over +167%). Antonio Cataneo is the ceo of Axactor Italy, which acquired a controlling stake of Italy’s CS Union in 2016 and the whole of it in 2019 when Banca Sistema sold its 10% stake in the business. In 2019, Axactor Italy hired Giovanni Restelli (Head of Operations), Fortunato Pagano (Head of Sales) and senior managers Paolo Ferro and Dario Lazzari.
Como’s Court accepted the receivership application of Canepa, an Italian silk producer (see here a previous post by BeBeez). The turnaround plan of the company’s owner Michele Canepa received the approval of above 50% of the creditors. Senior creditors will receive about 9 million by January 2021. Subordinated creditors will receive 5 million in 2021-2024. Canepa provided his own resources as collaterals for this plan. In 2017, Dea Corporate Credit Recovery (part of Dea Capital Alternative Funds) acquired 75% of mid and long-term debts of Canepa, Snaidero, Calvi, Pieralisi, Grotto, Biokimica, Trend Group, Consorzio Latte Virgilio, and Zucchi. The company’s owner applied for receivership at the end of May 2018 after Dea CCR said it could reach a restructuring agreement with Canepa’s lending banks and acquire 67% of the business and committed to invest 19 million for relaunching the company and to seek a new industrial partner. Dea CCR sold the business to Michele Canepa and Maurizio Ceriani. Canepa has sales of 90 million euros (106 million yoy) with an ebitda in the region of 10% and a net financial debt of 60 million.
Italian credit servicer Fire is interested in m&a and the launch of an ipo, said the company’s chairman Sergio Bommarito (see here a previous post by BeBeez). Alberto Vigorelli (group ceo of Fire) said that the company would target real estate surveyors. For the business plan 2021-2023 the company aims to post a 20% Cagr and invest 17 million euros after the issuance of a minibond by the end of 2020. The company will devote 35% of the investiments will focus on digitalization and data science. Furthermore, Fire aims to hire a Chief Information Officer and a cco. Fire has assets under management worth above 20 billion euros, revenues of 49 million (+4% yoy) and an ebitda margin in the region of 10%.
For 2020, Hong Kong-based SC Lowy aims to invest 200 million euros in the financing Italian companies through the Italian subsidiary Solution Bank (fka Credito di Romagna) and launching a 200 million fund for acquiring the credits of companies in distress or special situation, Michel Lowy, the co-founder of the bank, said to BeBeez (see here a previous post by BeBeez). Lowy founded SC Lowy together with Soo Cheon Lee. Solution Bank is expanding its commercial bank activity to the syndicated loans and illiquid assets, with a special focus on sub-performing credit. Lowy said that the fund that the bank is launching will invest in single-name Utps or small portfolios of UTPs. Alessandro Esposito is the head of the Italian activities of SC Lowy.
Milan-listed investor in NPLs Illimity closed deals amounting to 1.9 billion euros between September 2018 and January 2019 (see here a previous post by BeBeez). This figure includes the issuance of loans to SMEs and the acquisition of portfolios of NPLs. At the end of 2019, the assets of the SMEs unit of Illimity amounted to 527 million (+65% since September 2019). Earlier this year, Illimity acquired 70% of IT Auction, a vendor of industrial and real estate assets sold through bankruptcy auctions. Corrado Passera is the ceo of illimity.
Algebris launched Algebris Npl Fund, an investment vehichle in distressed credits, with a one billion euros fundraising target (see here a previous post by BeBeez). The fund is for institutional investors and will last 6 years, including an investiment period of 3 years. Investors signed commitments for 125 million and expressed interest for pouring 500 million. At the end of 2016, Algebris Npl Fund raised 1.25 billion ahead of a 1 billion target, while in 2014 it raised 437 million. The heads of Npl investments team of Algebris are Gabriele Giorgi and Antonella Di Chio. The professionals collaborate with Algos, a special servicer that belongs to Algebris.
The unexpected public offer that Intesa Sanpaolo launched on UBI Banca on 18 February, Tuesday may create a banking group that in 2021 may have a 5% NPE ratio or less than 4% according to the guidelines of the European Banking Authority (EBA) (see here a previous post by BeBeez). The merged banks may have a 7.6% NPE that may go down to 7% at the end of 2020 through adjustments worth 1.2 billion euros and part of the negative goodwill of the transaction. In 2021, the gross NPE of the merged bank might be less than 5% after the sale of a portfolio of UBI’s NPLs with a face value of 4 billion.
Katia Mariotti, a former Restructuring & Non Performing Exposures Leader of EY, is the new head of the Npl unit of Banca Ifis and will report to the bank’s ceo Luciano Colombini (see here a previous post by BeBeez). Mariotti will take charge for her new role on 2 March. Before working for EY, she has previously been PwC’s Co-Head of NPLs Italy and worked for Rbs. Mariotti will work with Francesco De Marco, the coo of Ifis credit recovery company FBS, amd Riccardo Sigaudo, the head of Ifis department for Npl transaction.
The 1.397 billion euros worth portfolio of Npls from that Värde Partners, Barclays investment bank, and Guber Banca acquired in July 2018 from 53 banks that are part Cassa Centrale Banca are now part of a securitization that Futura 2019 carried on through the issuance of Milan-listed ABS (see here a previous post by BeBeez). Futura carried on a single tranche securitization in 2018, and in December 2019 sold the then 1.26 billion worth portfolio to another securitization vehicle that carried on the issuance of ABS is several tranches. Senior A Class shares amounted to 158 million and received a BBB rating from DBRS and Baa2 from Moody’s and Scope. Futura issues B Class shares amounting to 37 million and J Class shares for 0.8 million, both unrated.
Asset manager Kryalos may step in the market of Npls and Utps, said ceo Paolo Bottelli pointing out that by 2021, the firm aims to have 8 billion euros (from current 6.5 billion) of real estate assets under management (see here a previous post by BeBeez). Bottelli added that the compay aims to grow in the logistic sector. In December 2018 Blackstone acquired 35% of Kryalos Investments, the holding that controls Kryalos and Kryalos Asset Management.
Centotrenta Servicing launched Hypermast STS, a DLT blockchain-based end-to end platform for the management of credits securitizations (see here a previous post by BeBeez). IBM and Blockchain Reply, part of Gruppo Reply, acted as technology partbers while BNP Paribas Securities Services as the depository bank and paying agent. Hypermast STS aims to increase the simplicity and transparency of securitizations.
On 1 April 2020 Astasy, a consultancy firm for real estate repossessions and auctions, will complete the merger with competitor NPLs RE_Solutions (see here a previous post by BeBeez). The companies announced such agreement in November 2019. Mirko Frigerio is the ceo and founder of Astasy, while current owners Gruppo Gabetti (34%), Axia.RE (33%), and Astasy (33%) founded NPLs Re_Solution in 2017. In December 2018, Astasy sold 28% of NPL RE Solution to Gabetti Property Solutions. RINA Prime Value Services, a company born out of the merger between AxiA.RE and Rina Prime Value Services and Gruppo Gabetti will own 65.9% and 15% of NPL RE Solution. RINA Prime Value Services equally belongs to AxiA.RE (of which Ugo Giordano has 70% and ceo Piercarlo Rolando has 30%) and Rina spa, of which Palladio and NB Renaissance acquired a stake in 2014 and in 2016. RINA may list on Milan in 1H19. In November 2019, the parties said that the shareholders of NPLs RE would have been AxiA.RE (60%), Gabetti (15%), and Frigerio (15%). NPLs RE_Solutions board members are Giordano (chairman), Rolando (ceo), Frigerio (operative vicepresident), Massimiliano Morana (senior director), Luigi Avogadro, Gianfranco Navone, and Marco Speretta (COO of Gabetti Property Solutions).
