The RiverRock Italian Hybrid Capital Fund is managed by Ugo Fiaccadori (ex Bain) and Roberto Ippolito ( ex GE Capital) and aims to invest into Italian SMEs.  

Italian Small and Medium Enterprises, the backbone of the Italian economy, are currently facing a period of shortage of capital. In this context, the Fund aims to fill this gap with a product that both matches the needs of Italian SMEs and, at the same time, remains attractive to investors from a risk adjusted return perspective.

The Italian Hybrid Capital Fund has an emphasis on debt/equity investments (preferred equity, convertibles, loans with equity warrants, etc.), which offer - via a higher position in the capital structure - increased certainty for returns. At the same time, the strategy of the Fund is to maintain a significant premium over cash returns by securing upside potential by including, where appropriate, an equity within or alongside each of the debt investments.

 

Target Transaction

 

  • Italian Small and Medium Enterprises with the following characteristics: 
    1. Revenues between € 50-150 million and EBITDA of € 7-50 million
    2. Established local market leadership, with focus on international expansion  
    3. Strong management team and R&D approach.
  • The average ticket of each investment will be between € 10-15 million.