Progressio, the Italian private equity firm headed by former Carlyle and Investindustrial partner Filippo Gaggini, is raising its fourth fund.
Progressio Investimenti III is targeting €225m, with a hard cap of €250m, and aims for a first close in the summer with a final close at the end of 2017. The general partner will contribute four to five per cent of the capital.
Having historically focused on raising funds from Italian investors, the firm is looking to broaden its LP base and has taken on Cebile Capital as placement agent.
“When you see what this group has achieved over the past decade, in difficult economic circumstances, it’s not a surprise that LPs around Europe view Progressio as a haven amid the continent’s political turbulence. They operate above the market but sensibly. We expect over-subscription,” said Cebile Capital’s managing partner Sunaina Sinha.
Progressio will continue its strategy of investing €25m to €30m in Italian mid-market “excellence” companies, especially in the pharmaceuticals, consumer and industrials sectors.
The firm prides itself on finding “hidden champions” through proprietary deals – companies which need “reorganising, repositioning or revitalising”, according to Gaggini.
Progressio has so far made 19 deals, in companies such as retailer Moncler and furniture company Giorgetti, averaging a 6.5x Ebitda entry multiple.
Since 2005, 16 of these have been realised, delivering a gross IRR of 80 per cent and a 3.5x multiple on invested capital. The most recent exit was from hydraulics manufacturer Duplomatic.
This will be Progressio’s third buyout fund but fourth fund in total, after the firm managed out the €43m Mittel Private Equity fund inherited from its former parent.
Progressio’s first own-brand fund, a 2006 vintage, received €100m in commitments, while its second fund launched in 2010 and closed at €205m.