Private equity firm Idinvest Partners has launched a large-scale fund to finance the modernization of production tools for European SMEs, to increase their competitiveness and productivity in both local and international markets.
Idinvest SME Industrial Assets fund (ISIA Fund) is targeting a €300m close, having raised an initial €150m from the European Investment Bank (EIB), the European Investment Fund (EIF), and a number of European institutions. This will enable Idinvest to finance around 70 projects across European target markets including France, Spain, Benelux and Germany.
By providing lease financing for the acquisition of production tools, the fund will allow company directors to optimize their cash management, whilst benefiting from the latest generation of technology and machinery at a reasonable cost.
Each investment size will be between €1 and €15M (in average €5M), where there is a particular funding gap, and will have an average financing duration of 5 to 7 years.
Led by Sylvain Makaya and Fabien Afchain, the fund will focus on the relatively under-invested industrials, consumer staples, healthcare and materials sectors, purchasing assets to be leased back to SMEs, who will be responsible for their management and maintenance.