Progressio SGR, the Italian private equity firm, 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 EUR225 million for a final close at the end of 2017, after a summer first close. As with previous funds, the money will predominantly be spent on proprietary deals and primary buyouts.

The management team, which has 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.

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Progressio investee businesses are developed into dominant players in their respective markets through organisational restructuring (Italchimici generic pharmaceuticals), branding and expansion into new markets (Moncler jackets and coats), and a bolt-on strategy (Chromavis cosmetics and Duplomatic hydraulics). They each have revenues of between EUR30 million and EUR150 million. 
The company’s 16 home-grown realisations have produced 3.5x MOIC and an 80 per cent gross IRR.
Cebile Capital is acting as adviser and placement agent.
Filippo Gaggini, Progressio managing partner, says: “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, says: “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.”

Source: Private Equity Wire

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