Strategies
Italian Private Debt Funds » Introduction

 Since 2015, the Italian Private and Direct Lending funds include the Tenax Italian Credit Fund ("TICF"), the Italian Credit Fund I (“ICF1”) and the recently started Tenax PMI fund (the “IDL Funds”). This investment strategy seeks an absolute and unlevered return from originating and acquiring highly collateralized credit instruments issued by Italian small and medium performing enterprises (SMEs), with an average maturity between three and five years. We do not invest in special situations or NPLs but support sound Italian best-in-class SMEs in their quest for growth, funding needs and generational change. 

The opportunity for our investors derives from the dramatic decrease of medium term bank lending to SMEs in Italy (-40% since 2011), improved SMEs risk profile (debt/equity ratio more than halved since 2011) and the lack of alternative lending or equity options. We trade-off higher returns from not investing in quasi-equity or unsecured instruments with the highest level of downside protection (large security package and stringent financing documentation) and a detailed due diligence process, with an average of just one investment completed out of ten screened opportunities. Our investments are also supported by the European Investment Fund’s InnovFin SME guarantee facility.

The investment team includes four professionals, with a cumulated expertise of over sixty years and almost fifty transactions completed in Italy and Europe.

The funds are closed ended vehicles financed by long term commitments from major institutional anchor investors and managed by Tenax Capital Limited ("Tenax") which is authorised and regulated by the Financial Conduct Authority.