Smart Capital Exits Co-Investment in Venpa
Deal News | Dec 18, 2024 | Finance Community IT - 3 Private Equity
Smart Capital, a firm specializing in permanent capital investments, has successfully exited its co-investment in Venpa, resulting in a lucrative return. The exit follows an agreement initialized on October 10, 2024, for the acquisition of Venpa by Sagard MidCap, a private equity firm. Initially undertaken in the first half of 2021, the Venpa operation was part of Smart Capital's co-investment strategy, focused on investments aligning with the company's missions and strategy. The exit yielded significant returns for Smart Capital, with a 3.2x capital gain and an impressive internal rate of return (IRR) of 38.5%. Venpa, established in 1981, specializes in rental services for construction and earth-moving equipment, maintaining a strong market presence in Italy and internationally. Through organic growth and strategic M&A activities, Venpa has significantly increased its revenue and EBITDA, reinforcing its leadership in the Italian market. This deal highlights Smart Capital's effective investment strategy and the potential gains achievable through well-aligned co-investments.
Sectors
- Private Equity
- Construction Equipment Leasing
- Mergers and Acquisitions
Geography
- Italy – Both Smart Capital and Venpa are Italian companies, with Venpa specializing in services within the Italian and international markets.
- International – Venpa operates beyond Italy, reflecting its international business activities.
Industry
- Private Equity – Smart Capital is engaging in investment activities characteristic of private equity, involving co-investments and exits.
- Construction Equipment Leasing – Venpa specializes in renting construction and earth-moving equipment, operating within the infrastructure and construction sector.
- Mergers and Acquisitions – Venpa is active in M&A strategy to grow its operations and consolidate its market presence.
Financials
- 400,000 EUR – The amount Smart Capital received from its exit.
- 3.2x Return – The multiple of invested capital Smart Capital earned from its Venpa exit.
- 38.5% IRR – The internal rate of return Smart Capital realized from the Venpa investment.
- 100 million EUR (Revenue 2024) – Projected revenue for Venpa in 2024.
- 40 million EUR (EBITDA 2024) – Projected EBITDA for Venpa in 2024.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Smart Capital | Exiting Investor | Company | A holding company specializing in permanent capital investments in private and public equity sectors. |
| Venpa | Target Company | Company | An Italian group focused on the rental of construction and earth-moving equipment. |
| Sagard MidCap | Bidding Company | Company | A private equity firm acquiring Venpa from Smart Capital. |
| Q Capital | Promoting Company | Company | Organizer of the initial investment in Venpa, specializes in club deals for Italian SMEs. |
| Stefano Miccinelli, Renato Peroni, Massimo Busetti, Giovanni Pedersoli, Francesco Niutta | Founders of Q Capital | People | Individuals who spearheaded the private equity investment efforts at Q Capital. |