Key Takeaways
- • Apollo Global Management is acquiring approximately 67% equity ownership in Reno de Medici (RDM), Italy's leading recycled cardboard producer, from majority shareholders Cascades Inc. and Caisse de Dépôt et Placement du Québec, with plans to delist the group following completion of the transaction.
- • Reno de Medici entered debt restructuring negotiations with Apollo's involvement, securing a moratorium on approximately €600 million in debt while negotiating potential haircuts of roughly 50% with bondholders.
- • Conning & Company (a Generali Investments subsidiary) is acquiring a 77% stake in MGG Investment Group, a direct lending and private credit investor with over $6 billion in assets under management, for €320 million plus earn-out provisions, with MGG's management retaining minority ownership.
- • Intrum Italy, a joint venture between Intrum Group (51%) and Intesa SanPaolo (49%), acquired multiple portfolios of unsecured trade payables (UTPs) and non-performing loans (NPLs) from Italian banks totaling €1.2 billion in gross value, including €500 million in leasing facilities, with a separate €100 million UTP portfolio acquired through subsidiary UTP Italia.
- • The Italian distressed assets and NPE market is characterized by structural scarcity of secured NPEs alongside abundant unsecured granular exposures and UTPs, driving M&A activity among alternative credit investors and financial institutions.
Summary
Apollo Global Management is executing a significant acquisition strategy in Italy's distressed asset landscape, acquiring a controlling stake in Reno de Medici (RDM) from Canadian paper manufacturer Cascades Inc. and Quebec's Caisse de Dépôt et Placement du Québec. The transaction will give Apollo funds approximately 67% equity ownership of RDM, Italy's leading producer of recycled cardboard, with the asset manager subsequently launching a full delisting offer. This move reflects Apollo's broader capital deployment in Southern European distressed and restructuring opportunities.
Parallel to the equity acquisition, RDM is undergoing comprehensive debt restructuring facilitated by Apollo's involvement. The company has secured a moratorium on approximately €600 million in outstanding debt while negotiating with bondholders on a revamp that could reduce debt levels by roughly 50%. This two-pronged approach—equity acquisition coupled with debt restructuring—positions Apollo to achieve operational control and financial optimization of the platform.
The broader Italian distressed credit market is experiencing consolidation driven by structural supply-demand dynamics. Conning & Company, operating as a Generali Investments subsidiary, is acquiring a 77% stake in MGG Investment Group, a direct lending and private credit investor managing over $6 billion in assets under management, for €320 million plus performance-based earn-outs. MGG's chief executive and chief investment officer Kevin Griffin will retain his operational roles, with the company's directors and McCourt Global maintaining minority stakes.
Credit exposure portfolios continue flowing through institutional channels. Intrum Italy—a joint venture between Intrum Group (51% ownership) and Intesa SanPaolo (49%)—acquired multiple NPL and UTP portfolios from Italian banking institutions totaling €1.2 billion in gross value, inclusive of €500 million in leasing facilities. The venture's subsidiary vehicle, UTP Italia, separately acquired a €100 million portfolio of unsecured trade payables, partnering with Arrow Global affiliates Sagitta and Zenith. Market observers note that the Italian NPE landscape is characterized by scarcity in secured exposure pools alongside abundant unsecured granular assets and UTPs, creating structural drivers for M&A activity among specialist credit platforms.
Parallel to the equity acquisition, RDM is undergoing comprehensive debt restructuring facilitated by Apollo's involvement. The company has secured a moratorium on approximately €600 million in outstanding debt while negotiating with bondholders on a revamp that could reduce debt levels by roughly 50%. This two-pronged approach—equity acquisition coupled with debt restructuring—positions Apollo to achieve operational control and financial optimization of the platform.
The broader Italian distressed credit market is experiencing consolidation driven by structural supply-demand dynamics. Conning & Company, operating as a Generali Investments subsidiary, is acquiring a 77% stake in MGG Investment Group, a direct lending and private credit investor managing over $6 billion in assets under management, for €320 million plus performance-based earn-outs. MGG's chief executive and chief investment officer Kevin Griffin will retain his operational roles, with the company's directors and McCourt Global maintaining minority stakes.
Credit exposure portfolios continue flowing through institutional channels. Intrum Italy—a joint venture between Intrum Group (51% ownership) and Intesa SanPaolo (49%)—acquired multiple NPL and UTP portfolios from Italian banking institutions totaling €1.2 billion in gross value, inclusive of €500 million in leasing facilities. The venture's subsidiary vehicle, UTP Italia, separately acquired a €100 million portfolio of unsecured trade payables, partnering with Arrow Global affiliates Sagitta and Zenith. Market observers note that the Italian NPE landscape is characterized by scarcity in secured exposure pools alongside abundant unsecured granular assets and UTPs, creating structural drivers for M&A activity among specialist credit platforms.
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