Investment policy

The AIF seeks to achieve an appreciation of its assets, with the objective to ensure the achievement of sufficient income from the capital invested, through transactions and initiatives for the - diversified and indirect (fund of funds) - financial support of small and medium-sized enterprises.

More precisely, the AIF may offer financial support to small and medium enterprises - through investments in funds and companies investing in risk capital within the framework of:

  • expansion transactions designed to finance the development of existing enterprises in order to promote – even through acquisitions - their geographic and product expansion;
  • replacement transactions, designed to restructuring a company's shareholders' structure, where the AIF, through the invested funds, may replace the minority shareholders no longer interested in that company’s activity, as well as
  • management buy in/buy out transactions designed to support the acquisition of distressed enterprises due to a generation change and to develop possible aggregations, with the involvement of in-house or external managers

The Management Company will primarily invest in target funds operating in the same territory and sector and in target funds that focus their investments on small and medium-sized enterprises operating in Italy or that commit to invest in such enterprises a share at least equal to the AIF’s commitment, which are selected on a professional basis, and:

  • have an investment policy and duration, as set out in their respective fund rules or memorandum of association, substantially in line with the AIF’s. More specifically, with regard to duration, this should be functional to the target company’s plan; with regard to profitability, this should be suitable and assume a balanced leverage to support the transaction;
  • are managed by managers with a proven expertise in the private equity sector and a specific knowledge of the Italian market;
  • are able to provide timely and accurate reports;
  • whose accounts are audited by a primary auditing firm.

As part of this investment policy, the AIF's investments will focus particularly on SMEs that:

  • present interesting development prospects at national and, above all, international level;
  • intend to complete consolidation processes in order to strengthen their position in national and/or international markets;
  • - offer potential to enhance brands, patents or specific know-how or that use advanced and innovative processes and technologies;
  • are family run businesses undergoing generational or management change;
  • have a highly efficient, professional and experienced management team

The AIF investments may, generally, not exceed 50% of the aggregate commitment of each of the invested funds.

Funds for the growth of SMEs

The medium-long term objective is to create a broader spectrum of medium-sized companies, by encouraging the aggregation of smaller companies, allowing them to be more competitive at the national and international level.