Riello Investimenti Partners expands into Venture Capital
Linfa Ventures is born, the first new generation Italian AgriFood fund
Riello Investimenti Partners Sgr expands into Venture Capital. The launch of this new asset class - which joins Private Equity and Private Debt - takes place through the promotion of Linfa Ventures, the first venture capital fund in Italy focused on investments in innovation in the agro-food chain. This is the most important sector of the world economy and particularly relevant in the Italian context, where it represents 15% of GDP. Venture Capital investments in the agri-food sector have increased tenfold in recent years to reach $ 30 billion globally. Linfa Ventures has a collection target of 80 million, with a first closing set at 40 million and, as for the other funds of the asset management company, it will be managed by an independent team. Geographically, the allocation of investments will be mainly in Italy (80%), but the fund will also be able to invest in other European countries.
Linfa will mainly invest in minority stakes, protected by governance and exit agreements, providing capital increase resources to support the development of "Late Stage" companies, which have therefore passed the early stages of life and are rapidly expanding but not yet at break even, and in "Growth Capital" companies, ie SMEs with consolidated business models that require capital and strategic support to accelerate growth. The fund will be PIR Alternativo Compliant and will offer its investors the opportunity to access the tax benefits envisaged by the legislation for investments in innovative SMEs. The asset management company will also apply its proprietary ESG screening model dedicated to unlisted SMEs to Linfa Ventures.
"The Sgr was born in the late 1990s as a private equity manager, but we soon understood, thanks to our deep knowledge of the Italian business fabric, the importance of offering industrial skills also through investments in private debt", he commented Nicola Riello, president of Riello Investimenti Partners Sgr. "With the decision to open up to venture capital, we are expanding our intervention to younger, dynamic and fast-growing realities, with the aim of further contributing to the recovery of the Italian country system and offering our investors always new opportunities for high quality investment", concluded Riello.
EFA News - European Food Agency