The Qatar Investment Authority has backed Ramon Arocena Soria, a former Advent International director, Nicola Colavito, a ex-MD at Barclays, and Carlos Cortina, formerly at Spanish electricity company Grupo Endesa, who have formed Peninsula Capital Advisors.
Peninsula will take majority and minority stakes in both public and private companies in southern Europe and has begun looking for deals, according to people familiar with the matter.
One of the people added that Peninsula would invest in “national champions” across all sectors and write minimum equity tickets of around €100 million.
As well as providing the €600 million for Peninsula’s debut fund, QIA has allocated a substantial amount for potential co-investments, the person said. According to Peninsula’s website, it can take equity stakes of up to €1 billion.
The fund has the standard private equity fee and performance structure, the person added. Buyout funds typically charge an annual management fee of between 1.5% and 2% and take 20% of the fund’s profits – also known as carried interest.
SWFs have been increasing their allocation to private equity. According to figures from Preqin, published in April, 55% of state investment vehicles were investing in private equity, up from 47% in 2015.
These funds have a particular interest in Italian companies operating in the luxury consumer sector, according to two buyout executives investing in southern Europe. On July 28, Singaporean sovereign wealth fund Temasek made an investment in Italy’s Moncler, which produces high-end clothing and accessories and operates in more than 70 countries.