London, March 24, 2017 – Progressio SGR, the Italian private equity firm, today announces that it is raising a new fund, Progressio Investimenti III, in response to LP demand and a doubling of proprietary deal flow over the past five years.
Progressio SGR announces that it is raising a new fund, Progressio Investimenti III, in response to LP demand and a doubling of proprietary deal flow over the past five years.
Progressio will raise €225m for a final close at the end of 2017, after a summer first close. As with previous funds, the money will predominantly be spent on proprietary deals and primary buyouts.
The management team, which has averaged a 6.5x entry EBITDA multiple across its portfolio of prestige domestic brands like luxury fashion retailer Moncler, high-end furniture company Giorgetti, and Sanlorenzo Yacht, is targeting exit returns of more than 2.5x from each portfolio company, over three-to-five year horizons, with significant upside potential.
Progressio investee businesses are typically exemplars of Italian mid-market excellence, which are developed into dominant players in their respective markets through organisational restructuring (Italchimici generic pharmaceuticals), branding & expansion into new markets (Moncler jackets and coats), and a bolt-on strategy (Chromavis cosmetics and Duplomatic hydraulics). They each have revenues of between €30 million and €150 million.
Investors in London, Paris, Frankfurt and other European financial centres have been attracted to Progressio’s distinctive returns and model for success in a weak Italian economy. The company’s 16 home-grown realisations have produced 3.5x MOIC and an 80% gross IRR, in the context of zero GDP growth.
Cebile Capital is acting as advisor and placement agent.
Filippo Gaggini, Progressio Managing Partner, commented: “We already have a strong pipeline of new deals and look forward to growing our network of talented Italian entrepreneurs and managers.”
Sunaina Sinha, Managing Partner of Cebile Capital, said: “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.”