Pillarstone Italy and Idea Capital Funds are both poised to launch separate investment platforms focused on the Italian shipping market, with an aim to invest in mid-sized enterprises in distress, sources tell Splash.
The aim is to help companies restructure and turnaround, and consequently help banks maximize the recovery of their original loans.
Both the private equity players, respectively controlled by KKR Capital and Idea Capital, are working hard to launch as soon as possible since Italian banks have already offloaded $1.6bn of shipping-related NPLs with a further $1bn currently up for sale.
Financial advisor Venice Shipping & Logistics recently calculated that the overall financial exposure of Italian shipowners with the banks stands today at $14bn, of which $7.6bn are non-performing loans, mainly related to bulk carrier and tankers.
Dea Capital has already launched two similar funds (Corporate Credit Recovery I and II) in Italy which comprise two-sub funds: a credit fund that consists of loans in several companies contributed to by banks (the loans have been contributed in exchange for units in the fund), and a fund which provides new capital to support the turnaround and growth of companies.