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HIG Capital and IDeA Capital Funds to invest in midi-sized Italian enterprises

Idea CCR, a platform managed by IDeA Capital Funds developed with support and funding from the anchor investor Bayside Capital (HIG Bayside), an affiliate of HIG Capital, is to invest in Italian mid-sized enterprises in distressed situations.

The aim is to help them restructure and turnaround, and consequently to help banks maximise the recovery of their original loans.
 
Idea CCR is currently in discussions with a number of leading Italian banks which are expected to contribute to Idea CCR a portfolio of medium and long term corporate loans. Currently, such portfolio is expected to have a nominal value of around EUR250m at closing, but over 12 months further loans could be contributed up to a total amount of EUR500m. In exchange for such contributions, the respective banks will receive Notes issued by Idea CCR. Idea CCR is also expected to raise funding from HIG Bayside and other investors up to 20 per cent of the nominal value of the contributed portfolio, which will be made available to Idea CCR in order to support the financial and operational restructuring of the distressed debtor companies.
 
The operating governance of the companies is expected to be controlled by Idea CCR through restructuring agreements, and will be managed by an experienced team led by Francesco Gori, former CEO of Pirelli Tyre and Managing Director of Pirelli & C and by Vincenzo Manganelli for the financial restructuring process.
 
Roberto Saviane, Chairman of IDeA Capital Funds, says: “IDeA Capital Funds will contribute the new venture with the knowledge and contacts in the financial and industrial Italian sector and will support the relaunch of the portfolio companies with its management and financial skills”.
 
Duncan Priston, Managing Director at Bayside Capital in London, says: “We are extremely pleased to announce this important collaboration with IDeA. We look forward to working together and leveraging our collective skills to identify and invest in attractive mid-market Italian companies.”
 
Raffaele Legnani, Managing Director and head of the activities of HIG Capital in Italy, adds: “we are happy to join IDeA in the development of this platform which can be a powerful tool for helping Italian mid-sized companies with our financial resources, turnaround expertise and international business contacts”.
 

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