Equita Expands Reach with Acquisition of CAP Advisory Stake

Deal News | Dec 18, 2024 | Equita Capital Sgr SPA

Equita Capital Sgr SPA has entered into a binding agreement to acquire a 70% stake in CAP Advisory S.r.l., a Milan-based financial boutique, to enhance its debt advisory services. The deal with CAP Advisory's founding partners—Fabrizio Viola, Fabio Cassi, and Matteo Pattavina—aims to strengthen Equita's position as a leading independent investment bank in Italy, focusing on delivering extensive advisory services to entrepreneurs, corporates, and financial institutions. CAP Advisory, with a strong track record in debt restructuring and capital structuring solutions, recorded over €3 million in revenues in 2023 from more than 45 deals. The acquisition, valued at a 9x price-to-earnings multiple applied to CAP Advisory's adjusted net profits from 2022-2024, is set for completion by June 2025, contingent on approvals including from the Bank of Italy. The transaction envisages a payment structure comprising cash and Equita treasury shares, with put and call options available from 2028 for the remaining stake. Key participants in the transaction include legal advisors Studio Legale Dentons and ADVANT Nctm, alongside internal teams.

Sectors

  • Investment Banking
  • Corporate Finance

Geography

  • Italy – Equita Group and CAP Advisory are both based in Italy, and the transaction strengthens Equita's role in the Italian investment banking sector.

Industry

  • Investment Banking – Equita is expanding its investment banking services through the acquisition of CAP Advisory, which will enhance its debt advisory offerings.
  • Corporate Finance – CAP Advisory specializes in corporate finance solutions, contributing to Equita's strategic interest in acquiring its majority stake.

Financials

  • 9x price-to-earnings multiple – Transaction valuation based on CAP Advisory's average adjusted net profits from 2022-2024.
  • 3 million euros – Revenue generated by CAP Advisory in 2023.

Participants

NameRoleTypeDescription
Equita Capital Sgr SPAAcquirerCompanyLeading independent investment bank in Italy.
CAP Advisory S.r.l.Target CompanyCompanyMilan-based independent financial boutique specializing in debt advisory.
Fabrizio ViolaChairman at CAP AdvisoryPersonPart of the founding partners of CAP Advisory and a senior advisor at Equita.
Fabio CassiCEO at CAP AdvisoryPersonPart of the founding partners of CAP Advisory with extensive corporate finance experience.
Matteo PattavinaFounding Partner at CAP AdvisoryPersonPart of the founding team at CAP Advisory involved in the transaction.
Bank of ItalyRegulatory ApprovalGovernmentFinal approval authority for the transaction.
Studio Legale DentonsLegal Advisor to EquitaCompanyProvided legal advisory services to Equita during the transaction.
ADVANT NctmLegal Advisor to CAP InvestCompanyProvided legal advisory services to CAP Invest in the transaction.