Private equity, first social impact fund coming soon

It has already raised EUR 30 million and aims to reach EUR 60 million in the next eight months. Called Kyip Impact Mission (Kim), it is the first private equity fund in Italy with a social impact and is part of the stable of Kyip Capital Sgr, a management company founded and chaired by the former Intesa Sanpaolo, Luciano Hassan. The fund has two major anchor investors: the Italian Investment Fund and Pfc, the family office of the Marzotto family, which has a particular sensitivity and expertise in impact investing and, more generally, in responsible finance.

Social-impact private equity belongs to the Article 9 category, i.e. the category with the most stringent standards on the European green regulation side. The fund focuses on companies with high growth potential active in the health and wellness sectors. In particular, the targets include the whole chain: prevention, care, nutrition and also the promotion of healthy lifestyles. The company must also have an ebitda between EUR 2 and 5 million. The impact fund will mainly tend to acquire minority stakes.

In the world of sustainable finance, and even more so in the 'impact' segment, the measurement of these results is of paramount importance. Well, in the case of the Kyip Impact Mission fund, the entrepreneur together with the manager will have to establish indicators to measure precisely the impact generated by the business to which the fees are also linked. Some examples: reducing waiting times, improving accessibility to care, increasing prevention rates.

The marriage between fund and entrepreneur is not forever. Although in this case there is a social impact to be measured. Like all private equity, at some point the investor wants to exit. This is the so-called way out, which could take the form of a sale to other private equity funds or large groups. It should be noted that in 2021 the Sgr launched another fund, Kyip Investment fund, focused on the digital transformation of Italian SMEs (160 million under management).

"At Kyip, we believe that innovation and sustainability are key levers for creating long-term value,' says Hassan. 'We are convinced that in private equity we will see a gradual evolution towards strategies that combine financial and non-financial objectives, recognising the value of companies that generate positive impacts for society. With the first closing of the Kim fund, we position ourselves among the first movers in this asset class, aiming to offer solid returns to our investors and consolidate our leadership in sustainability'.