• Home
  •  
    Regions
    • Europe
    • UK & Ireland
    • DACH
    • Nordic
    • France
    • Southern Europe
    • Benelux
    • CEE
    • Asia
  •  
    Deals
    • Buyouts
    • Venture
    • Exits
    • Refinancings
    • Build-up
    • Turnaround
    • Secondaries
    • Advanced deal search
  •  
    Funds
    • Buyout
    • Venture
    • Mezzanine
    • Debt
    • Funds-of-funds
    • Secondaries
    • Fundraising pipelines
    • Advanced funds search
  •  
    GPs & LPs
    • GP profiles
    • LP profiles
    • GP news
    • LP news
    • Sponsors search
    • LPs search
  •  
    Secondaries
    • Deals
    • Funds
    • News
    • Analysis
  •  
    People
    • People moves
    • Analysis
    • In Profile
    • Q&A
    • Videos
    • Comment
  •  
    Analysis
    • In Profile
    • Fundraising
    • Q&A
    • Comment
    • Videos
    • Podcast
    • Reports
    • Data Snapshots
  •  
    Unquote Data
    • Deals search
    • Exits search
    • Funds search
    • Sponsors search
    • Advisers search
    • LPs search
    • League tables
    • Reports
  • Sign in
  • Sign in
    • You are currently accessing unquote.com via your Enterprise account.

      If you already have an account please use the link below to sign in.

      If you have any problems with your access or would like to request an individual access account please contact our customer service team.

      Phone: +44 (0)203 741 1137

      Email: Georgina.Lawson@acuris.com

      • Sign in
     
      • Newsletters
      • Account details
      • Contact support
      • Sign out
     
  • Follow us
    • Twitter
    • LinkedIn
  • Free Trial
  • Subscribe
Unquote
Unquote
  • Home
  • Regions
  • Deals
  • Funds
  • GPs & LPs
  • Secondaries
  • People
  • Analysis
  • Unquote Data
      • Deals search
      • Exits search
      • Funds search
      • Sponsors search
      • Advisers search
      • LPs search
      • League tables
      • Reports
  • You are currently accessing unquote.com via your Enterprise account.

    If you already have an account please use the link below to sign in.

    If you have any problems with your access or would like to request an individual access account please contact our customer service team.

    Phone: +44 (0)203 741 1137

    Email: Georgina.Lawson@acuris.com

    • Sign in
 
    • Newsletters
    • Account details
    • Contact support
    • Sign out
 
UNQUOTE
  • Southern Europe

Fondo Italiano awakens Italian private equity

Fondo Italiano awakens Italian private equity
Fondo Italiano expansion to awaken Italian PE
  • Amy King
  • 16 July 2014
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Google plus  
  • Send to  

Having significantly boosted Italian activity since its inception, Fondo Italiano's recent shift towards fund-of-funds activity may give local private equity firms reason to rejoice. Amy King reports

With a portfolio of 37 companies, 20 fund-of-fund commitments and a headcount of 45, Fondo Italiano di Investimento's impact on the local market has been huge. Indeed, in its first full year of operation, volume and value of deal activity peaked in Italy.

The number of deals with Fondo Italiano as the sole private equity sponsor represented 18% of deal volume in 2011, 19% in 2012 and 8% in 2013, according to unquote" data. And the local behemoth's market share is about to get bigger.

The GP recently secured a further €350m commitment from Cassa Depositi e Prestiti (CDP), which is 80% owned by the Italian Ministry of Economy and Finance and holds 12.5% of the €1.2bn private equity fund. The fresh capital will be used to support two new funds-of-funds; a €500m vehicle to focus on private debt and a €100m vehicle to support the venture capital industry. CDP has cornerstoned each fund-of-funds, providing 50% of LP commitments.

"We have to raise an equivalent amount from other investors," says Innocenzo Cipolletta, president of Fondo Italiano and industry association Aifi. "We are mainly raising from the banks that backed Fondo Italiano's first fund - Banca Intesa, Unicredit, Monte dei Paschi and some of the Banchi Popolari. We are also trying to raise money from other banks, insurers and pension funds, as well as industrial companies – we want to have some industrial investors, mainly for the venture capital fund-of-funds."

Critics of Fondo Italiano declare themselves unable to compete with the scale and momentum afforded to the bank-backed behemoth by its unique position, bridging public and private. Cipolletta denies the claim: "We are a private investor; our capital came from the banks. The initiative is public, but the money is private, so in a sense we are competition but it is a fair competition. We take minority stakes, while other funds focus mainly on majority, so we are in a sector where there is less competition. In principle, there is no conflict of interest because we raise money directly from the market."

Nevertheless, the GP has arguably thrown down the gauntlet in an area of the market that already represented a battleground for local investors. According to unquote" data, 75% of dealflow occurred in the small-cap space in Italy in 2010 – when Fondo Italiano completed its first investment on the closing days of the year. The following year, the market segment took 79% of dealflow, rising to 81% in 2012 before a drop to 72% in 2013. The small-cap space was already well-served. And with €100m left to be invested in the space by the GP, and another fund on the horizon, it will remain well-capitalised.

Biting the hand that feeds?
However, Fondo Italiano's recent shift towards fund-of-funds activity may give local private equity firms reason to rejoice. "Our proposition is to finance small- and medium-sized companies. Sometimes Italian SMEs are not ready for a direct equity injection immediately – they have a propensity for debt. A large amount of companies are in debt to the banks, which are lending less due to the crisis and capital requirements. We want to substitute short-term bank debt with long-term debt. There is a risk of a credit shortage and minibonds are a good way to approach a company. It is a way of preparing companies for an equity injection the next time around," says Cipolletta.

Far from deal-snatching, the recent move suggests a more nourishing role in the local ecosystem. The market certainly needs it; in the first half of the year, dealflow in the lower mid-market reached the lowest point since H1 2010. Given the speed and size of its maiden fund – indeed, the GP employs 45 staff and is set to expand to satisfy demand for private debt and venture capital expertise – Fondo Italiano is expected to hit the ground running, with the momentum to which onlookers have become accustomed.

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Google plus  
  • Send to  
  • Topics
  • Southern Europe
  • LPs
  • GPs
  • Italy
  • Top story
  • Fondo Italiano di Investimento

More on Southern Europe

PE purchases stall in Italy as buyers lose faith – PE Forum Italy
PE purchases stall in Italy as buyers lose faith – PE Forum Italy

PE players are hoping that valuation expectations will align in 2H 2023, easing dealmaking backlog

  • Southern Europe
  • 12 July 2023
Fondo Agroalimentare Italiano invests in Urbis Food
Fondo Agroalimentare Italiano invests in Urbis Food

Deal marks the fund’s full deployment with more than EUR 50m invested across nine transactions

  • Southern Europe
  • 13 June 2023
Intesa Sanpaolo investment banking head exits for BNP Paribas
Intesa Sanpaolo investment banking head exits for BNP Paribas

Marco Lattuada previously oversaw activities including M&A and debt capital markets at the Italian firm

  • Southern Europe
  • 15 December 2022
William Blair launches Madrid office, adds investment banking practice in Zurich
William Blair launches Madrid office, adds investment banking practice in Zurich

Álvaro Hernández to lead new Spanish branch; healthcare will be first focus of Swiss expansion

  • Southern Europe
  • 12 December 2022

Latest News

Partners Group to release IMs for Civica sale in mid-September
  • Exits
Stonehage Fleming raises USD 130m for largest fund to date, eyes 2024 programme

Sponsor acquired the public software group in July 2017 via the same-year vintage Partners Group Global Value 2017

  • 04 September 2023
BHM Group builds on PE strategy, eyes European medtech and renewable energy acquisitions
  • Investments
Stonehage Fleming raises USD 130m for largest fund to date, eyes 2024 programme

Czech Republic-headquartered family office is targeting DACH and CEE region deals

  • 01 September 2023
Redalpine expands leadership team amid CHF 1bn-plus fundraise
  • Venture
Stonehage Fleming raises USD 130m for largest fund to date, eyes 2024 programme

Ex-Rocket Internet leader Bettina Curtze joins Swiss VC firm as partner and CFO

  • 31 August 2023
Change Ventures aims to hold final close for EUR 20m third fund by mid-2024
  • Funds
Stonehage Fleming raises USD 130m for largest fund to date, eyes 2024 programme

Estonia-registered VC could bolster LP base with fresh capital from funds-of-funds or pension funds

  • 31 August 2023
Back to Top
  • About Unquote
  • Advertise
  • Contacts
  • About Acuris
  • Terms of Use
  • Privacy Policy
  • Group Disclaimer
  • Twitter
  • LinkedIn

© Merger Market

© Mergermarket Limited, 10 Queen Street Place, London EC4R 1BE - Company registration number 03879547

Digital publisher of the year 2010 & 2013

Digital publisher of the year 2010 & 2013