UniCredit to Finance Companies Under Restructuring

By Giovanni Legorano 

MILAN-- UniCredit SpA Chief Executive Federico Ghizzoni said Thursday that the bank's board approved a plan to create a fund that will finance a set of companies under restructuring of which UniCredit is a creditor.

The bank will contribute up to EUR2 billion for the moment to this vehicle which will be set up in partnership with its Italian peer Intesa Sanpaolo SpA, private equity giant KKR & Co. and consultant Alvarez and Marsal.

"The objective is to support these companies' growth, through investments in their equity," Mr. Ghizzoni said. He said the platform will be open to other investors.

Mr. Ghizzoni also said that the investment approach of this vehicle will be different from that of private-equity funds. "The investment horizon will be longer and the expected return higher," Mr. Ghizzoni said.

Write to Giovanni Legorano at [e-mail]

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