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Three Hills Capital Partners
Three Hills Capital Partners: Mike Risman's London-based firm uses preferred equity to invest in founder-led European companies without taking control.
Three Hills Capital Partners
Founded in 2013 by former Goldman Sachs Special Situations Group veteran Mike Risman, Three Hills Capital Partners is a London-based investment firm deploying a distinctive preferred-equity strategy. The firm was established to address a gap Risman observed in the European lower mid-market: demand for growth capital that does not force founders to cede control. Chairman Giuseppe Recchi, formerly CEO of Telecom Italia and a long-time GE executive, joined the partnership in 2014, bringing operational credibility and a dense corporate network. Three Hills targets investments of €15–50 million across enterprise software, business services, consumer, and healthcare sectors in Western and Southern Europe. The firm deploys structured preferred equity with contractual downside protections alongside minority common equity, aligning with founders rather than displacing them. Confirmed portfolio companies include Italian yacht equipment manufacturer Quick Group, Spanish travel technology provider Travel Compositor, and French healthcare platform Elsan (per Real Deals, 2023). Geographic exposure spans the UK, France, Italy, Spain, and Portugal. The firm does not pursue buyouts or control transactions. The firm raised over €100 million for its second fund in 2021, exceeding its predecessor (per Real Deals, 2023). The team of roughly 15 professionals operates from London and New York. September 2023: Three Hills exited its investment in Quick Group to Fondo Italiano d'Investimento, returning capital to investors (per the firm, September 2023). Three Hills' structural differentiator is its commitment to a single non-control instrument across an entire portfolio. This creates a repeatable sourcing advantage with founder-owned businesses that have been approached only by buyout funds or traditional venture capital. The firm's succession architecture pairs Risman's structured-finance experience with Recchi's operating background, producing a governance model that emphasizes negotiated downside protection rather than boardroom majorities.
General information
Firm type
Asset Manager
Year founded
2013
AUM
Undisclosed
Location
Region
Europe
Country
United Kingdom
City
London
Corporate office
London, United Kingdom
Additional offices
New York, United States
Principals
Mike Risman
Managing Partner
Giuseppe Recchi
Chairman
Sector focus
Frequently asked questions
What investment structure does Three Hills Capital Partners use?
Three Hills deploys preferred equity almost exclusively — a structured instrument that provides downside protection through contractual rights without taking majority control. The firm's tickets range from €15–50 million and combine preferred shares with a minority common equity component. This avoids the control triggers that make buyout firms unwelcome to many founder-owners.
Who runs investment decisions at Three Hills?
Managing Partner Mike Risman leads investment decisions. Risman previously worked in Goldman Sachs' Special Situations Group and established Three Hills in 2013 specifically to offer non-control structured capital. Chairman Giuseppe Recchi, a former Telecom Italia CEO, plays a significant role in relationship sourcing and portfolio-company governance.
How does Three Hills source proprietary deal flow?
Three Hills relies on direct origination through its partners' networks, particularly Recchi's extensive C-suite relationships across Southern Europe. Because the firm is not competing in buyout auctions, it often sees opportunities where a founder has declined a control-sale process. The firm's narrow product focus reinforces its sourcing reputation: intermediaries know Three Hills will not push for a majority stake.
Does Three Hills participate in fund commitments or only direct deals?
Three Hills invests exclusively through direct transactions into operating companies. It does not make fund commitments, secondary purchases, or LP investments into other private equity funds.
Which sectors and geographies does Three Hills target?
The firm invests in enterprise software, business services, consumer, and healthcare services — all within Western and Southern Europe. Confirmed markets include the UK, France, Italy, Spain, and Portugal (per Real Deals, 2023). The firm has not disclosed investments in Germany, the Nordics, or Central and Eastern Europe.
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