Atempo Growth Growth raises €455M with Fund II; CDP Venture Capital joins.
A key aspect of the closing was the entry of CDP Venture Capital , with a €15 million investment through the fund of funds. "They had already looked at the first fund, but the timing wasn't right. They decided to enter with Fund II: for us, this is an important signal of institutional credibility and growing attention to Italy," co-founders Luca Colciago and Matteo Avramov Giulivi explained to Milano Finanza . The limited partners also include Banco Santander , Decalia , British Business Investments , and the European Investment Fund , as well as an Italian banking group and a leading European insurance group. Santander is also a minority shareholder in the management company: a structure that combines private and institutional capital at a time when private capital funding remains selective.
The model is that of "smart" debt , halfway between venture capital and bank credit. Atempo finances rapidly growing technology and tech-enabled companies , often with negative EBITDA and cash flow, but with a clear value trajectory. "Not all potential unicorns are good debt investments," the founders point out. "Some are excellent equity deals, but our payoff is different: we need to see a concrete opportunity to create value over the next 18 months and attract capital for the company's new growth phase." The risk/return profile is consistent with this approach. Historical average losses on venture debt are around 3% of the invested amount; in the worst case scenario in 2001, they reached 6%. The target for each deal is a multiple between 1.4 and 1.5, with an expected net IRR for investors of more than 10% .
Launched in 2022, Fund I has a DPI (ratio between capital returned to investors and actual paid-in capital) of 43%, expected to soon reach around 50%. "Returning capital in a relatively short time is part of our strategy," they note. "We are an IRR strategy: lower multiples than equity, but earlier returns and lower volatility." The structures average 12 months of pre-amortization and three years of amortization, with security interest also extending to intellectual property.
Due diligence isn't limited to numbers: "We don't stop at balance sheets and profit and loss. We talk to clients and board members to understand where the company will be in 18 months."
"The mismatch between supply and demand is evident," the founders conclude. "The priorities now are to close Fund II at the target, consolidate performance, and prepare the architecture for a potential Fund III ," with an optimal size of between €600 and €800 million . (All rights reserved)
The team currently comprises approximately 20 professionals, adequately sized for assets up to €500 million; beyond €600 million, the structure will need to be further strengthened. In Italy , the platform has already invested in MotorK and is looking at new operations, in an ecosystem that has produced cases like Satispay and Scalapay , but remains characterized by small domestic funds (€150-€200 million) and regulatory complexity.
The market, however, offers room: in the US, debt represents between 10% and 20% of capital invested in tech; in the UK , around 5%, and much less in the rest of Europe. According to estimates cited by management, potential annual European demand is €7 billion, compared to a supply of less than €1 billion.
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Please note the above article has been translated from Italian to English.
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