October SME V is a pan-European private debt fund aiming to support the growth of SMEs and small-mid caps in France, Italy, Spain, the Netherlands and Germany
Cassa has invested €25 million in the fund to facilitate access to credit for smaller enterprises, with a deal that will make €50 million worth of financing available to Italian SMEs
To date, October’s funds have provided €1 billion to 3,800 SMEs across Europe, including 1,100 Italian SMEs
Cassa Depositi e Prestiti has completed a €25 million investment in October SME V1, a pan-European private debt fund managed by the October digital lending platform. The goals of the investment are to promote new alternative finance tools to speed up access to credit for smaller companies and make them more competitive internationally.
CDP has joined other significant European investors in providing funding, including major public institutions such as the European Investment Fund (EIF, EIB Group), Bpifrance (the French investment bank) and Invest-NL (the Dutch impact investor), meaning the fund now has more than €120 million at its disposal.
The goal is to support the growth and competitiveness of thousands of enterprises, especially small and medium-sized businesses. All this can be achieved thanks to the use of the October technological platform, based on a hybrid financing model that allows enterprises to secure loans directly from institutional and private investors.
Specifically, the resources will be allocated to SMEs and small mid-caps with their registered office and/or operational headquarters in France, Italy, Spain, the Netherlands or Germany. As part of this, the fund is committed to granting loans to companies with their registered office and/or operational headquarters in Italy for a total amount no less than at least double CDP's investment – equal therefore to €50 million. In addition, the funding will allow the beneficiary enterprises to develop growth projects with solutions suited to their needs by accessing alternative financing channels to banks.
Since 2016, the fintech company has provided around €1 billion in loans through its funds to 3,800 European SMEs, 1,100 of which are Italian. The European enterprises funded by October have a combined turnover of €25 billion and employ more than 70,000 people.
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ABOUT OCTOBER October is a European fintech company whose mission is to finance enterprises in the best possible way. As a financing platform for enterprises, it has already provided almost €1 billion in funding to thousands of SMEs across France, Spain, Italy, the Netherlands and Germany. Through its SaaS technology solution, October Connect, it also helps financial institutions to make better data-driven automated risk decisions.
HOW THE FUND WORKS October SME IV is a long-term European investment fund that issues financing to SMEs and small mid-caps with their registered office and/or operational headquarters in Italy, as well as in other EU countries where the October Group operates through its digital lending platform. By using the platform, companies can obtain financing on the basis of a specific co-financing scheme, thanks to resources from the fund, provided by institutional investors and private lenders who view the platform as an innovative and attractive investment opportunity which also allows them to support the real economy. ___________________ 1Direct lending alternative investment fund, incorporated under French law, classified under Article 8 of the SFDR (Sustainable Finance Disclosure Regulation) by virtue of the environmental and social characteristics promoted by its investment strategy.