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Progressio raising €225 million for fourth fund
London, March 24, 2017. Progressio SGR, the Italian private equity firm, announced 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 €225 million for a final close at the end of 2017 after an intended summer first close. As with previous funds, the money will predominantly be spent on proprietary deals and primary buyouts.
The management team, which 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 homegrown realisations have produced 3.5x MOIC and an 80% gross IRR in the context of zero GDP growth.
Cebile Capital serves as the 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.”