Riello Investimenti Partners SGR is an independent asset management company which has been operating for 20 years in the Alternative Investment sector in the management of both private equity and debt funds.
Our origin and industrial background constitute an important competitive advantage, enabling us to benefit from a widespread network of relationships with entrepreneurs, managers and specialized advisors.
Since Riello Investimenti Partners’ foundation, we have focused on small to medium sized enterprises, combining industrial and financial expertise to improve portfolio companies’ operating performance.
Our investment style is centred on the active management of our portfolio companies, through the development of their managerial skills, corporate governance improvement, business model reinforcement and internationalization.
Alternative investments in private equity and private debt have consistently outperformed public markets’ returns on both stocks and bonds, with a lower volatility, whilst remaining uncorrelated to key macro-trends. Our private equity and private debt strategy aims to support the real economy and the country’s economic development, assisting SMEs in the implementation of their business plan.
Private Equity is the main instrument to invest in the country’s real economy. It is the ideal solution for both target companies aiming to increase their growth potential, and investors, as it consistently outperformed other asset classes, while also being adequately decorrelated, diversified and benefitting from lower volatility.
Italian SMEs, backbone of our industrial system, represent the major opportunity to invest in the real economy.
The funds managed by Riello Investimenti Partners are mainly involved in majority stake or qualified minority acquisitions.
We are focused on traditional “Made in Italy” industries, those with great value generation potential, with solid fundamentals and leadership potential.
We support growth on domestic and foreign markets, as well as new aggregation projects through ("build up") strategies.
Among the first movers in the Italian Private Debt market, we have been investing in this asset class since 2016. We have been focusing on debt instruments, “minibonds”, issued by Italian SMEs to provide the most efficient capital structure to support their growth and ensure diversification of their financial sources.
Our investment approach includes arranging, underwriting and holding the debt instrument in our portfolio until its maturity (“buy & hold”); we share the requirements and outcomes with our portfolio companies, and provide guidance to identify and support future development plans.
We evaluate our target companies’ strategic plan and business model and continuously monitor their development achievements, following an “equity style” approach.
ORIGINATION & DEAL FLOW
80% of Italian enterprises are controlled by family groups and 25% of them are facing generational transition, a critical phase of the business lifecycle that represents, by far, the most important deal flow opportunities.
Riello Investimenti Partners Sgr, owing to an efficient origination process, has analysed over 650 investment opportunities over the last 10 years, 450 of which are private equity and 200 private debt.
The strong local roots and the consolidated relationships with entrepreneurs, managers and advisors are reflected in its proprietary strategic deal flow.
INVESTMENT PROCESS AND PERFORMANCE
The process involves contribution from the Investment Team, Investment Committee, Risk Managers, Compliance, Key Managers and Advisors.
Private Equity Funds
Since our inception, we have successfully completed 15 investments and 2 add-ons with 13 divestitures, for a total 40 fully managed and executed transactions.
Our “equity style” approach grants investor returns that are aligned with the standards required for this asset class, with consistent cash flows and distribution of proceeds across the whole funds’ duration.
To date, we have successively completed 15 investments between 2016-2020, predominantly arranged and managed as Minibonds, to support Italian SMEs in addition to traditional debt instruments, and to diversify between financial sources.
Riello Investimenti Partners Sgr has consistently pursued a substantial and long-term value creation approach following ESG principles (Environmental, Social and Governance) for each target company as well as for the overall production system. Beyond financial returns, we also consider and give great attention to the non-financial performance, valued and measured against ESG principles.
We have signed the UNPRI as the first fundamental step of our specific commitment to the Responsible Investments.
The proprietary ESG model applied by Riello Investimenti Partners is divided into three phases:
EX ANTE: Excluding controversial sectors, we have a predilection for technological innovations that are environmentally sustainable and based on cutting edge manufacturing processes. We include the ESG analysis since the beginning of the due diligence process.
MANAGEMENT: within the active management approach, the team boosts target companies’ awareness with regards to the sustainability of their business and production process by directing attention towards the ESG principles, particularly towards Energy Transition (E) and Work Improvement Policies (S).
EX POST: Assessment of the positive impact created during our management period, particularly with reference to job creation and long term oriented and sustainable development plans.