Borletti Group

Private Equity

OVERVIEW

The private equity division has expertise in three core sectors: retail, luxury and branded consumer goods and real estate with a retail component.

Since 2005, Borletti Group has led acquisitions that total €3bn:

INVESTMENT STRATEGY

Borletti Group makes investments in buy-outs, acquiring stakes in mid-sized companies within its core industry sectors.

These investments typically include leveraged buyouts and other types of private equity transactions, including co-investments. Borletti Group differs from many other private equity groups because it adjusts its investment horizon to suit the investment needs of the acquired company. This means that there are no maturity constraints on exit time, an approach that has resulted in an excellent track record of returns for co-investors.

INDUSTRY FOCUS

Borletti Group focuses on three core sectors:

– Retail

– Luxury and branded consumer goods

– Real estate with a retail component

VALUE CREATION

Borletti Group has a deep understanding of the sectors in which it invests. The Group brings a strong know-how to its investments and works with leading management teams to realise the full potential of the portfolio companies. The Group takes an active role in all investments, leveraging its network in targeted industries and using specific knowledge of industries to create a bespoke approach to achieve better results. Its aim is to act as support and accelerator of the companies’ CEOs and the management teams. Borletti Group participates in key strategic decisions but it does not take a direct management role, leaving companies’ management teams in charge of the day-to-day operations.

The two investments from which Borletti Group has exited proves that this is a winning approach and has returned blended net money multiple of 5x for its investors

box PRIVATE EQUITY value creation

Investments


Leading Italian department store with over €300m sales, 5,500 employees and a prime real estate portfolio

Investment Performance

  • Repositioning of the flagship and the group towards a different brand strategy (unsuccessful own brands were replaced by A-brands)
  • Strong operational improvement for continuing operations:
    • Same Store Sales 4-year CAGR of +3.5% in a global crisis context
    • Flagship store sales: +70%
    • +4 points increase in profitability
    • EBITDA CAGR of 71%

www.rinascente.it/rinascente/en


Leading French department store chain with €950m sales, over 5,000 employees and a prime real estate portfolio

Investment Performance

  • Successful repositioning of store network including the flagship store leading to a significant increase in sales productivity per sqm
  • Strong operational improvement:
    • Same store Sales 5-year CAGR of +4% in a global crisis context
    • Flagship store sales: +43%
    • +3 points increase in profitability
    • EBITDAR CAGR of +10%

departmentstoreparis.printemps.com/en

Development of a contemporary and innovative Outlet Village in San Marino to create the “Next Shopping Experience”, involving leading fashion brands

www.themarket.sm

Operator of the 14 largest train stations in Italy with over €100m of revenues, 95,000sqm of commercial area and 750m of visitors

www.gsretail.it

Real Estate

OVERVIEW

The real estate division pursues investment opportunities in Europe focused on retail properties, office buildings and hotels.

Since 2008, Borletti Group has participated to acquisitions that total €4.5bn:

 

Borletti Group is currently focusing on the hotel sector and more specifically on 3* and 4* hotels with bed & breakfast business models, a low food & beverage component and limited additional services located in Western Europe.

Investments

Highstreet

Real estate portfolio of the German department store Karstadt

Bologna

Multitenant office building in Bologna

Torino

B&B hotel in Torino

Asset Management

OVERVIEW

The asset management division actively manages a global diversified portfolio across all asset classes and regions totalling over €200m.

To achieve its targets, the asset management team is focusing on asset allocation and manager selection, with an open architecture approach, relying on the expertise and the support of global banks and leading asset managers around the world.

In 2015 Borletti & Partners launched a proprietary Sicav SIF structured in 2 different compartments which gather all the liquids investments of the group and which can be combined to obtain a global balanced portfolio:

 

Outside the funds, the asset management team is also investing the assets of the group in selected less liquid investment strategies like private debt and private equity funds.

Savile Multimanager Defensive

This fund is actively selecting external investment managers and funds focusing on fixed income, yield oriented and low volatility alternative strategies like market neutral and arbitrage. The objective of the fund is to protect invested capital and to generate an average annual return of 5% over the medium term.

Savile Multimanager Dynamic

This fund is actively selecting external investment managers and funds focusing on equity long only and long short strategies as well as on any kind of alternative strategies ranging from global macro to event driven or systematic. The objective of the fund is to generate an average annual return of 7% to 10% over the medium term with a volatility lower than the global equity markets.

spac

Overview

In 2017 Borletti Group has created SPACTIV SpA a SPAC (Special Purpose Acquisition Company) listed in the Milan Stock Exchange in September 2017 for €90m.

The focus of SPACTIV is to merge with an Italian mid-cap company, with high growth potential focused on lifestyle.

www.spactiv.com

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