Red Fish LongTerm Capital collects €6.17 million in equity crowdfunding on Opstart

The Italian investment company RedFish LongTerm Capital spa (RFLC) has raised $7.44 million (€6.17 million) through the Italian equity crowdfunding platform Opstart. The news was recently announced in a post on Linkedin by the company’s founder and CEO Paolo Pescetto.

The equity crowdfunding campaign had a minimum collection target of $600,000 (€500,000) and a maximum target of $9.6 million (€8 million). This is the second-largest campaign, in terms of collection, ever concluded in Italy after that of Fin-Novia (also an investment vehicle) that last March had collected $9.16 million (€7.6 million).

Find more details about the crowdfunding campaign that RedFish LongTerm Capital just closed and stay on top of the market with the latest financial headlines, with our companion app Born2Invest.

The RFLTC campaign was launched last July

The capital raised will contribute, in combination with bank leverage, to the minority or majority acquisition of the identified companies. Currently, RFLTC states that it has already identified three target companies characterized by significant revenue growth, excellent margins and low/nil financial debt.

Red Fish Long Term Capital is a holding company that invests in the real economy, created to solve the imbalance between the supply of private capital and the demand for support from SMEs with an ebitda under $12 million (€10 million). RFLC gives the possibility to choose further deal-by-deal investments to the shareholders of the holding company. The latter was born from the experience of Red-Fish Kapital spa and Innovative-RFK.

Red-Fish Kapital is a company that since 2012 operates in the field of private equity investments, with investments of about $60 million (€50 million) in club deal mode. It was established with the initial aim of continuing the investment activity of the holding company Evolution Investment spa (Fondo RFK I), a company founded in 2007 by a group of entrepreneurs including Paolo Pescetto, president of Arkios Italy, m&a advisory boutique and professor at the Polytechnic University of Milan and the University of Genoa. Red-Fish Kapital has in its portfolio: Cecchi Delgea srl, owner of the historic Italian brand Gelati Cecchi 1936; Pistacchio spa, a Sicilian company that produces and markets semi-finished products derived from both Bronte DOP pistachio and almonds and hazelnuts, as well as a wide range of typical pistachio-based specialties; Gedy, manufacturer of bathroom accessories with international presence and production plants in China; Asco Filtri, Italian company active in the production and marketing of filtration systems and filtering units.

In 2017 Paolo Pescetto, Massimo Laccisaglia and Andrea Rossotti founded the investment vehicle dedicated to startups and innovative SMEs Innovative-RFK (i-RFK) spa. Innovative-RFK landed on Euronext Access on December 27th, 2019, closing the last step of the crowd listing process started in September 2019 with an equity crowdfunding campaign on the CrowdFundMe platform, which raised $3 million (€2.5 million), equal to 23.5% of the capital.

To date, i-RFK has already invested about $7.8 million (€6.5 million) involving 50 private and qualified investors, achieving an annual Irr above 30% and estimated 50% in 2019. Innovative-RFK currently has 5 subsidiaries: Keisdata; Easy4Cloud; Websolute; Inventis; Microcredit of Enterprise. The latter has recently raised over $2 million (€1.7 million) in its equity crowdfunding campaign on the BacktoWork platform. The valuation of the holdings of the 5 companies in the portfolio is $14.2 million (€11.8 million), but for the purposes of listing, the value of the latest capital increase has been maintained and therefore $12.6 million (€10.5 million), which spread over the total number of shares (about $10.6 million (€8.79 million)) becomes $1.43 (€1.19) per share.

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(Featured image by Adeolu Eletu via Unsplash)

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