Closing for Investindustrial Growth III fund.
Raised €1.1 billion to invest in lower mid-market European companies
Investindustrial announces the € 1.1 billion closing of the Investindustrial Growth III fund. The fund raised above target: the fund will continue the successful strategy launched by Investindustrial in 2018 that aims at majority investments in Europe in the lower mid-market segment, complementing the objectives of its sister fund Investindustrial VIII, which instead pursues a similar strategy but in the mid-market segment dedicated to larger companies.
Growth III was raised with the support of existing investors, who account for about 90% of the total funding: the base includes 51 long-term investors, with 75% of the capital coming from Europe and 25% from the United States. The fund focuses on business development in the lower mid-market segment: it provides important operational support to quality companies, including in the agribusiness sector, of this size in order to enable them to reach their potential through a sustainable long-term strategy.
Growth III will continue to target majority investments in quality European companies in the lower mid-market with high internationalization potential, based mainly in Italy, Spain, Portugal and Switzerland: already completed the first investment in Q4 2022 in Arterex, a global manufacturer of specialty medical components and devices.
Previous funds have invested more than € 1 billion in 13 groups, which in turn have acquired an additional 35 companies, working with numerous investors on various co-investment opportunities. Examples, in Italy, of the lower mid market strategy have been investments in groups such as Dispensa Emilia, active in the restaurant industry, Omnia Technologies specializing in wine and beverages, and Procemsa, active in the dietary supplement sector.
"We are very pleased that our consistent performance and long-term strategy have again been recognized by our historical partners and several new investors -explains Andrea C. Bonomi, chairman of the Industrial advisory board of Investindustrial-. Companies in the mid-market segment and their highly talented managers and employees have enormous potential to be able to create sustainable long-term leaders. By investing throughout the mid-market segment and making the best use of our extensive operational development team, Investindustrial is now more effective than ever in adding value to its portfolio companies and generating attractive returns for its investors".
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