Three Hills Capital Partners closes its second fund at c. €200 million

Monday, July 25, 2016

Three Hills Capital Partners (“THCP”) is pleased to announce the successful final closing of its second fund with total committed assets of c. €200 million, in excess of the initial target of €150 million.

The new fund, named Three Hills Decalia after the fundraising partnership with Geneva-based asset manager Decalia, has completed its fundraising less than two years after the final closing of the first fund, which is now fully invested. As a result, THCP holds c. €400 million of assets under management.

The strategy of THCP is currently based on providing subordinated private debt and senior equity solutions across European mid-market companies, led by established management teams and entrepreneurs. THCP’s core strategy is to work directly with successful entrepreneurs (“sponsor-less deals”) to finance their need for capital for transformational events.

This philosophy is strongly supported by a private equity background embedded in the team’s spirit, which is visible throughout the whole investment process (due diligence, legal documents and monitoring), in addition to a unique investor base consisting of some of the most important entrepreneurs and European industrial holdings. 

Since its founding, THCP has developed its expertise in ‘Buy & Build’ projects and minority buyout financings – strategies which fit well with its team members’ private equity know-how. The fund will target investments with tickets in the range of €15 million to €50 million and will also work on deals of up to €100 million with primary longstanding co-investors aligned with THCP’s approach.

The new fund has already committed approximately €75 million of capital to 4 market-leading companies:

  • Genius Sports Group, a UK leader in the provision of sophisticated data-driven software aimed at capturing, distributing and commercialising official sports data
  • Aquafil, the worldwide leader Nylon 6 manufacturer for textile floorings and the apparel and sports industries. The company is present in 3 continents across 8 countries. This is THCP’s 2nd investment in Aquafil
  • Tomorrow Ltd., a leading fashion distribution platform, that has become one of the most prominent sales platforms for emerging brands in the fashion industry
  • Building Energy, a global renewable Independent Power Producer (IPP), with an integrated business model, a projects’ pipeline of 2.200MW and present in 4 continents

The fund has been raised among European institutional investors, family offices and HNWI.

Mauro Moretti, founder and Managing Partner of Three Hills Capital Partners, commented“After less than 2 years of Fund I closing, we are proud to announce the closing of Fund II, Three Hills Decalia, largely above our fundraising target. The collaboration with Swiss asset manager Decalia as advisor of the fund has been very productive, and once again highlights Three Hills’ innovative approach, this time applied to the fundraising exercise, allowing us to overcome our targets. The fund is already more than 40% invested and we will now focus on selecting the best opportunities from our extensive pipeline, in order to be fully invested within the next 18 months.”

With regards to the potential developments at THCP, Mauro Moretti added: “THCP continues to focus on its distinctive investment approach, looking for special opportunities in which companies are looking at new variables and flexible capital solutions as an alternative to traditional debt and equity financing. In the coming years we will also focus on identifying new niches, where investment strategies can be uncorrelated from the volatility of the financial market and, at the same time, are able to generate downside protected returns with a cash yield component for our investors.”