Equita Capital SGR, the asset management business of the Italian investment bank Equita, has started the fundraising process of its second private debt fund, aimed at both Italian and foreign institutional investors.
The fundraising of the EPD II fund will come mostly from pension funds, insurance companies and fund of funds, in addition to investors of the firm's first private debt fund (EPD) - whose re-ups in this second strategy are expected to be significant.
With a target size of €200m and an investment strategy in line with its preceding fund, the Equita Private Debt Fund (EPD), EPD II will mainly invest in senior uni-tranche and subordinated bonds in sponsor-led transactions, with a maturity of five to seven years and a bullet repayment structure.
We expect to reach a first closing in the first months of 2020 and complete the fundraising in the following twelve months.”
EPD II is an Italian closed-end private debt fund managed by Equita Capital SGR, Equita's investment boutique which, launched on 23 of July, focuses on alternative solutions for institutional investors.
Equita said in a note: "EPD II will benefit from a strong governance based on independent decision making process and alignment of interests between investors and the managing team."
Predicted returns are in line with the ones achieved by EPD, now fully deployed with an expected gross return of around 9.5%.
On 11 of October, Equita's private debt team successfully completed the last investment of its EPD fund, confirming the ability to progressively deploy capital raised from investors. The Fund subscribed a senior subordinated bond of €7m to finance Aksia Group SGR in the acquisition of Primo Group, one of the leading Italian chains of dental clinics. The strategy also invested €1m in a minority equity stake of the holding company of Primo Group.
Paolo Pendenza, head of Private Debt at Equita Capital SGR, said: "We are really satisfied with the investment activity and performance of our first fund.
"Equita's unique position in the Italian market allowed us to fully deploy capital within the expected period of three years. The very positive results achieved by the team put Equita in a privileged position to start raising its second private debt fund.
"We expect to reach a first closing in the first months of 2020 and complete the fundraising in the following twelve months."