Direct Lending Fund
In addition to the already operational fund, SGT ACO Direct Lending (Italy) Fund, Sagitta is investing in structuring a direct lending fund management platform aimed at capturing market opportunities in this sector, addressed to both companies facing temporary difficulties in accessing traditional credit and performing companies.
Direct lending is an important tool for diversifying funding sources for businesses, enabling them to obtain the necessary resources to finance working capital, receive medium-to-long-term credit for expansion projects or debt refinancing. Direct lending funds, oriented towards the medium-to-long term, can offer suitable support to businesses through a flexible and customized financing structure.
The funds under consideration are diverse and will have the following investment strategies:
- “New finance” loans to companies whose credits are classified as “UTP” (Unlikely to Pay)
- Real estate & bridge financing
- Financing to performing companies in a basket, with the possibility of subsequent securitization.
The investment process of direct lending funds is supported by a Fintech platform and the SGR’s proprietary credit scoring system to evaluate both creditworthiness aspects (even in non-performing situations), risk elements, and ESG profiles.
Special situation fund
Sagitta is studying the launch of a fund reserved for institutional investors and dedicated to investing in equity stakes in Italian industrial companies that, despite having solid industrial fundamentals, find themselves in temporary situations of financial difficulty, imbalance, or crisis due to various reasons. The fund can intervene in recovery operations or procedures such as:
- Negotiated settlement of the crisis (Composizione negoziata)
- Restructuring plan or “risanamento” plan
- Other special situations that hinder normal business conduct and allow the fund to make investments on favorable terms (management deadlock, shareholder disputes, etc.).
The fund will invest in companies operating in sectors or market segments characterized by growth prospects or at least stability, and which are in a state of crisis due to reasons not related to the specific product or market, but rather due to external or complex situations that can be resolved through the restructuring operation, such as:
- Excessive financial indebtedness resulting from previous leveraged buyouts
- Succession planning mismanaged by the entrepreneur
- Liquidity shortages due to a deterioration in the credit rating and difficulties accessing bank credit
- Investments yielding returns lower than expected, leading to unsustainable debt.