Italian investment bank and brokerage firm Equita sim targets private debt sector. Led by ceo Francesco Perilli, the bank is controlled by US private equity fund JC Flowers which owns a 51 pct stake in Equita sim shareholders’ capital.
Equita launched Equita Corporate Debt and Equita Leveraged Debt funds few days ago. The first fund is focused on financing Italian medium enterprises which have a high exposure to export while the second fund will focus medium enterprises’ corporate finance transactions. Both funds have a 200 million euros fundraising target (download here the press release).
The two funds have been structured under a Sif-Sicav in Luxembourg managed by Lemanik Asset Management sa. Equita Corporate Debt fund will invest in corporate bonds with a 4-7 years maturity paying a 300-600 basis points spread, issued by companies having a net debt to ebitda ratio lower than 3x. Equita Leveraged Debt will buy instead senior and junior secured bonds, unitranche debt and preferred equity with 4-7 years maturity paying spread higher than 700pb, issued by companies having a net debt to ebitda ratio lower than 4,5 x. The Leveraged Debt Fund signed an agreement with a US hedge fund maybe Och-Ziff, MF-Milano Finanza wrote few days ago) who will coinvest with the Equita fund.
managing the new project are Paolo Pendenza (a former manager in Goldman Sachs and BS Private Equity) and an other senior professional. Both the managers have been worlking in the leveraged and structured debt, in private equity and lending sectors for more than 20 years.