EIF and Fondo Italiano d’Investimento (FII) have signed a new agreement to support the development of Italian small and medium-sized enterprises (SMEs). The agreement foresees a close cooperation between the two institutions aimed at co-investing between EUR 500-600 million in private equity and private debt funds (including those investing in the so-called mini-bonds) that focus on Italian SMEs, and in venture capital funds that invest in start-ups and innovative companies at both seed and later stage financing.
Additionally, in order to boost investments into newly established companies, EIF and FII envisage to set up a specific fund of approx. EUR 30 million to co-invest alongside selected business angels, in line with the European Angels Fund initiative already launched and implemented by EIF.
EIF's Chief Executive, Pier Luigi Gilibert stated: “I am glad to sign this new agreement, which reaffirms EIF’s commitment to support the Italian venture capital and private equity markets. Joining forces with Fondo Italiano d’Investimento allows us to further increase the financial resources dedicated to Italian SMEs supporting them through their life cycle and their expansion and helping them to become international players”.
Fondo Italiano d’Investimento SGR’s Chairman, Innocenzo Cipolletta said: “This co-operation will strengthen the transparency of the corporate governance of Italian investment funds. This is an opportunity to attract new private investor’s resources from both the national and international markets and to share and enhance both our institutions’ knowledge of the Italian market.”
An initial cooperation between EIF and FII was established through an agreement signed in October 2011 and included a commitment of EUR 100 million from each institution. In three years, EIF and FII have jointly invested an amount of approx. EUR 500 million in 10 funds (of which EUR 370 million in 7 private equity funds and the remaining investment in venture capital funds).
The aim of the new agreement is to extend and further strengthen the collaboration between the two institutions and to reaffirm and expand the size and type of investments that will be made into Italian SMEs allowing them to grow and develop.This agreement complements the recently launched two new FII’s ”funds-of-funds”, one focusing on private debt (with target size of EUR 500 million and whose first closing already took place at EUR 250 million) and the other on venture capital (with target size of EUR 150 million, whose first closing already took place at EUR 50 million and is expected to increase up to EUR 100 million within the first quarter of 2015), with Cassa Depositi e Prestiti as cornerstone investor.
About Fondo Italiano d’Investimento (FII)Fondo Italiano d’Investimento SGR is a management company promoted by the Italian Ministry of Finance with the co-operation of Associazione Bancaria Italiana (Italian Banking Association), Cassa Depositi e Prestiti, Confindustria (Industrial Association), Intesa Sanpaolo, Banca Monte dei Paschi di Siena and Unicredit. Today, it manages three closed-end funds for a total amount of EUR 1.5 billion: ”Fondo Italiano di Investimento”, ”FoF Private Debt” and ”FoF Venture Capital”.
With a size of EUR 1.2 billion, “Fondo Italiano di Investimento” operates both through the acquisition of minority stakes in Italian SMEs with a turnover of at least EUR 10 million and, acting as a fund-of-funds, through investments into other private equity funds with similar focus and investment objectives. In this context, to date 37 direct investments have been approved, 4 exits have been completed and 21 commitments have been finalised in funds for a total amount of EUR 425 million. Overall, a total of over 120 companies have been directly or indirectly supported by the investment activities of Fondo Italiano di Investimento, with a total aggregate turnover of approximately EUR 4.5 billion and over 26,000 employees. The ”FoF Private Debt” and the ”FoF Venture Capital” have started their activity on 1st September 2014, with initial size of respectively EUR 250 million and EUR 50 million. The ”FoF Private Debt” aims at committing to funds focusing on the private debt market (mini-bond and other debt instruments) to support Italian SMEs; the ”FoF Venture Capital” is focusing on early stage (start-ups) and growth capital funds investing in high-tech companies.
About EIF
The European Investment Fund's (EIF) central mission is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment. EIF’s total net commitments to private equity funds amounted to over EUR 7.9bn at end 2013. With investments in over 435 funds, EIF is a leading player in European venture due to the scale and the scope of its investments, especially in high-tech and early-stage segments. EIF’s guarantees loan portfolio totalled over EUR 5.6bn in over 300 operations at end 2013, positioning it as a major European SME guarantees actor and a leading micro-finance guarantor. Through the above agreement with FII, EIF reaffirms its 10-year-long activity to support Italian venture capital and private equity funds, which has so far resulted in EUR 669 million being committed to 32 venture capital and private equity funds focussed on Italian SMEs. Since 2011, EIF cooperates with FII to support Italian SMEs in their expansion and internationalisation processes. Under the existing co-operation agreement with Fondo Italiano d'Investimento, to date EIF has made co-investments into 10 Italian venture capital e private equity funds, in which EIF has committed a total amount of EUR 295 million.
Press contacts
- Fondo Italiano d’Investimento SGR S.p.A: Roberto Del Giudice, Tel. (+39) 02 63532.1, roberto.delgiudice@fondoitaliano.it; Aurelio Arrigo, Tel. (+39) 335 6130043
- EIF: Joëlle Harvey j.harvey@eif.org; Emanuela Schiavoni, e.schiavoni@eif.org
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