Illimity SGR, an Illimity Group company created to set up and manage alternative investment funds, has completed the first closing of "Illimity Credit & Corporate Turnaround", the contribution fund dedicated to investments in credits classified Unlikely To Pay (Utp) towards SMEs with recovery and recovery prospects. The initial portfolio includes loans for a total gross amount of over 200 million euros from 33 companies operating in highly diversified sectors. These loans were sold by 7 banking institutions and groups (Banca Popolare di Sondrio, Banca Sella, Banco Desio, Bnl Bnp Paribas Group, BPER Group, Iccrea Cooperative Banking Group, La Cassa di Ravenna Group) which therefore became unitholders of the fund.
The initial cash endowment - subscribed by professional investors, including Illimity Bank, the bank founded in 2018 and still led by former minister Corrado Passera – amounts to 25 million euros, which will be used to manage the credits acquired and to support the turnaround of the companies in which the fund's assets are invested. In particular, Illimity Credit & Corporate Turnaround has some highly innovative features (including the possibility of acquiring and managing fully operational short-term credit lines and, through a securitization structure, ongoing credits and leasing agreements) which allow banks to total transfer of the financial exposure, regardless of the technical forms used, and at the same time to benefit from the company restructuring process.
In fact, the fund it will support the financial restructuring of companies aimed not only at overcoming the crisis, but also at enhancing their potential and at pursuing a concrete prospect of recovery.
“The management team – he commented Paola Tondelli, Head of the UTP & Turnaround Funds area of illimity SGR – of our first turnaround fund effectively combines financial and industrial expertise that allow us to look beyond the numbers, to grasp the potential of the companies in which the Fund invests. This first turnaround fund, which has very innovative technical characteristics, will soon be followed by other initiatives, always aimed at relaunching the country's entrepreneurial fabric, which will find in illimity SGR a new type of support, not only financial, but also of strategic vision " .
