Green Arrow Capital has held the final closing of its third buyout fund with total commitments of EUR230.6 million.
Green Arrow Capital partners, who recently acquired the majority stake of the asset management company (previously denominated Quadrivio Capital SGR), have actively participated in the success of the fund raising. The commitment has been raised mainly from institutional investors, for a 90 per cent of the total amount, while the residual 10 per cent comes from the team, the firm and HNWIs.
The Fund started its activity at the beginning of 2016 and has already made three investments and two add-on operations thanks to the experience of the investment team, the same that managed the two previous buyout funds focused on creating value on Italian SMEs through international expansion and consolidation in niche markets.
The investment strategy of this third fund is in continuity with the activity carried out in the last 10 years: the aim of the fund is to support the growth of the portfolio companies with a buy-and-built approach (merger and acquisition of competitors or business combinations to create synergies with other companies) and with an organic growth in their relevant markets (increasing production plant in Italy and abroad) mainly to increase the size of the company and to achieve an increase in the exit evaluation and in exit multiples.
The investment team is led by the director Nicola Pietralunga, supported by two senior investment managers, Francesca Gennaro and Roberto Giudici, and by an investment associate, Luca Chiabrera. The team has been working together since 2010 and it has managed the divestment activities of Fund 1 (ended in June 2016), deployment and realisation of Fund 2, closed in August 2018.
The previous Fund 2 run by the team, with a size of EUR 150 million and vintage 2010, concluded its divestment activities in August 2018, selling the two residual portfolio companies – Sebeto (Rossopomodoro restaurants chain) and Forno D’Asolo – achieving in eight years a net IRR for investors equal to 16 per cent with a cash-on-cash multiple on invested capital equal to 2.3-times.
