llimity SGR, the dedicated investment division of the illimity Group, announced that one year after its establishment, the illimity Selective Credit (iSC) fund, dedicated to supporting Italian small and medium-sized enterprises (SMEs), has invested more than 50 percent of its initial funding.
During the first quarter of 2024, iSC finalized two new loans, focusing on projects related to sustainability and innovation. These included a financing deal to Xenon Fidec, a private equity fund focused on the circular economy and energy transition, for the acquisition of S.T.A. Società Trattamento Acque S.r.l., a leading water treatment company. The investment by iSC amounts to €9 million, within a total financing of €26.5 million.
A further transaction saw iSC provide capital of €7 million to RedFish LongTerm Capital S.p.A., an industrial holding company, for the acquisition of a 10 percent stake in Industrie Polieco MPB S.p.A., a leading group in the design and production of piping systems and resins. This transaction also includes an option for an additional 5 percent acquisition by June 30, 2024.
iSC stands out for its flexible approach and for offering a broad spectrum of investment instruments, positioning itself as a medium- to long-term strategic partner for SMEs. By operating in co-investment with illimity Bank and other banking institutions, the fund broadens the scope of each financing transaction. In addition, iSC emphasizes the importance of ESG practices by offering improved economic conditions to SMEs that achieve specific sustainability goals.
Francesco Piovanelli, Head of Private Capital Funds at illimity SGR, emphasized the fund’s contribution to the development of Italian SMEs, highlighting the success of the transactions to date and the goal of continuing the funding path until September 2024 to further support Italian entrepreneurship.
The initial endowment of €90 million, subscribed by professional investors including Fondo Italiano di Investimento and illimity Bank, testifies to the interest and confidence in iSC’s potential. This fund, together with the other investment vehicles managed by illimity SGR, represents a key element in the group’s strategy to support and enhance the national productive fabric.
Blogger and Investment Management Advisor with focus on Distressed Assets & NPL. Massimo is Chief NPL & Fintech Editor at Credit Village Magazine.