DeA Capital Alternative Funds SGR Launches the IDEA CCR (Corporate Credit Recovery) II fund
The Board of Directors of DeA Capital Alternative Funds S.G.R. S.p.A. approved the launch of the IDEA CCR (CORPORATE CREDIT RECOVERY) II fund, the second fund dedicated to DIP (Debtor-in-Possession) Financing operations on the Italian market.
The aim of IDeA CCR II, like the first fund successfully launched in June 2016, is to help to relaunch, develop and enhance the value of medium-sized Italian companies with sound business fundamentals, some of which are facing financial difficulties. The investment strategy is to focus resources on the companies’ businesses, supporting the shareholders and management from a business and financial perspective, which, depending on the circumstances, will involve strengthening their assets and the managerial team and, where appropriate, the injection of new finance, generating value for all the stakeholders involved.
The Fund is composed of two segments: the Loans Segment and the New Finance Segment.
Contributions to the Loans Segment were made by: UniCredit, Intesa Sanpaolo, Banco BPM, BNL, UBI Banca, MPS, Banca IFIS and Credito Valtellinese, by selling to the Fund loans they had made to 24 companies, belonging to nine Italian business groups, that were identified in conjunction with the Fund’s management team. The loans selected relate to industrial companies with strong brand recognition, such as Canepa and Snaidero, major manufacturing bases in Italy and a strong international dimension.
The New Finance Segment has obtained commitments to funding resources, to support plans to relaunch the companies, from both DeA Capital S.p.A., the Fund’s sponsor, and other institutional investors (e.g. foundations, insurance companies and banks) and several Family Offices.
The management team is headed up by Francesco Gori and Vincenzo Manganelli.
Roberto Saviane, Chairman of DeA Capital Alternative Funds SGR, said: “The launch of the IDeA CCR II was made possible mainly thanks to the results achieved so far by the first Fund. Specifically, it has completed the restructuring of two historic Italian brands (Targetti and Pigna) and we are assisting two companies with excellent business fundamentals (Util Industries and Sinterama) on their path towards growth. In addition, it has generated proceeds of around EUR 75 million, or 42% of the purchase value of the IDeA CCR I fund’s loans. Thanks to the management measures implemented, the NAV of the first fund’s Loans Segment (taking into account the proceeds received and the distributions made) is in line with the purchase value of the loans”.
Gianandrea Perco, CEO of DeA Capital Alternative Funds SGR, commented: “The launch of this second fund, in conjunction with major Italian banks, only 18 months after the first one, represents a further step in the development of DeA Capital Alternative Funds SGR’s business of managing “unlikely to pay” loans. The IDeA CCR funds are an innovative class of alternative funds that make it possible to carry out more efficient restructuring, investment and project relaunches, aligning with investors’ interests and maximising the expected recovery of loans”.
DeA Capital Alternative Funds SGR was assisted by legal advisors CBA Studio Legale e Tributario, which followed the acquisition of the loans and dealt with the legal and tax matters, and by Gianni, Origoni, Grippo, Cappelli & Partners, which oversaw the creation of the fund structure.
The banks were assisted by law firm BonelliErede.
Source: DeA Capital press release