The private debt it is often seen as a rival to the banking system. However, some institutes have decided to ride the phenomenon, launching specific products to intercept a rapidly growing demand also in the Italian market.
Understanding Saint Paul for example just getting into private debt through Eurizon. The closing of the reserved closed-end fund Ecra Private Debt Fund was successfully completed for a value of approximately 156 million euros, which is more than the target of 150 million. The vehicle, founded by Eurizon Capital Real Asset, is directly backed by Intesa Sanpaolo And Understanding Saint Paul Vita in consideration of the strategic relevance of the initiative and its centrality within the 2022-2025 business plan.
The actors involved
The closing involved significant institutional investors with strategic value. In particular, the fund is supported, among others, by Cassa Depositi and Prestiti (Cdp), Italian Investment Fund through the funds FOF Private Debt Italia and FII Private Debt Italia Due and Inarcassa, which intervened as Cornerstone Investor. Furthermore, other major investors are participating, including BPER Corporate & Investment Banking.
The strategic objectives
The private debt market continues to grow and will reach approximately $500 billion in assets under management in Europe in 2023. “The ECRA Private Debt Fund is characterized by a high level of operating model innovation, focused on synergistic collaboration of Asset Management Divisions, Land Bank And IMI Corporate & Investment Banking“, explains a note. In particular, the fund aims to invest 50% in the corporate clients of the Banca dei Territori Division, in co-lending in the structured operations of the IMI Corporate & Investment Banking Division and for the remaining 50 % in market operations according to the typical co-investment model of Eurizon Capital Real Asset.
The first investments
The first two investments of the fund have already been approved, which will support the two Italian companies on their respective industrial growth paths. In particular, the first operation concerns the financing of an Italian group operating in the sector of design, production and sale of specialized components for the transport, telecommunications and automation sectors; the second operation will support an Italian group that is an international leader in the production of dosing systems for the water treatment, plant engineering and detergent sectors. “In consideration of the interest registered by various institutional investors, Understanding Saint Paul has decided to continue raising funds with the aim of reaching the hard cap of 200 million”, the note concluded. (Reproduction reserved)