Italian private equity firm Green Arrow Capital will launch a new buyout fund, Green Arrow Private Equity Fund 4, with a €350m target and a €400m hard-cap in the first half of 2020, Unquote understands.
The fund will be larger than its predecessor, Green Arrow Private Equity Fund 3, which held a final close on €230.6m in September 2018.
The GP plans to raise capital primarily from Italian and European institutional investors, and expects most of the LPs from its previous funds to re-up to this new vehicle. Green Arrow has an investor base composed of more than 200 LPs, of which 90% are institutional investors including Italian and European banks, sovereign wealth funds, funds-of-funds, bank foundations, pension funds and insurance companies. Among them, 30% are international investors from outside Italy.
Green Arrow Private Equity Fund 4 will acquire majority and controlling positions in Italian companies with an enterprise value of up to €150m and EBITDA in excess of €7m. It will deploy equity tickets in the range of €10-60m and target businesses operating in the fashion, industrial engineering and technology sectors.
The fund will pursue a buy-and-build strategy by targeting add-on acquisitions, mergers with competitors, and business combinations in order to support the expansion of its portfolio companies.
In addition to its core private equity business, Green Arrow is also active across other alternative asset classes, including private debt, credit recovery and infrastructure. The GP closed its Green Arrow Private Debt fund on €136.2m in November 2018. Meanwhile, it is raising a €200m fund called Special Credit Situations and plans to launch a €700m vehicle named Fondo Infrastrutture Energetiche at the beginning of 2020 to focus on energy infrastructure and renewables.