Mef aims at a 1.5 billion euro start-up for the National Strategic Fund

The national strategic fund, launched by the government to encourage investment in the real economy, is already operational. The regulations were approved by the Court of Auditors last week and Monday was the first day of operation. And meanwhile, Cassa Depositi e Prestiti has already received 14 expressions of interest (NDA), and at least six have been signed. This is what emerged at the Savings Show, where the fund was fully illustrated and where the undersecretary to the Economy, Federico Freni, explained that it: 'is a piece of a broader mosaic, whose main framework is the structural reform of the Tuf and the overall reorganisation of the financial market system'. In addition to the fund, 'there are other "legs" of the same project: one is mainly dedicated to venture capital - which must grow in Italy, and must do so with strong public-private collaboration - and another is dedicated to SMEs that want to access the stock market'. And attention must also be paid, the undersecretary explains, to research on SMEs.

Thus, the Fund was created to support investments in Italian listed companies other than blue chips. Mauro Baragiola, head of the Fund at Cassa Depositi e Prestiti, explains: "The purpose of the Fund is to create a flywheel, a patient investor, with dedicated funds for 5-7 years, with no possibility of redemption, able to provide stability and encourage company operations. It subscribes only newly established funds, under Italian law, and with a regulation with a few clear rules'. He adds: 'Managers will have full discretion in their management, just as private investors will be free in their choice of managers. Cdp and Mef will be simple underwriters, without any privileges, with the sole purpose of creating an ecosystem'. He also explains that there will be a minimum funding threshold of 35 million. SGRs, including foreign ones, will be able to raise capital from private investors, pension funds, foundations, banks, etc. Once the threshold is reached, the fund steps in. 'In a conservative scenario of 10 funds,' Baragiola continues, 'we could raise at least 700 million. With around 100 players in Italy (pension funds, insurance companies, foundations), if each invests an average of 10 million, we could easily reach 1 billion. At that point, with our 500 million, we would have 1.5 billion'. Then international investors could also be involved. The funds will be Fia closed, with a duration of 5+2 years. During any extensions, Cdp's contribution will be diluted. At least 70% of the fund will have to be invested in SMEs, defined as companies not included in the Ftse Mib index or in banking stocks. The remaining 30% may go into small caps, Italian large caps, or Italian/European government bonds. All shares must be listed on an Italian market. 'No fund,' Baragiola continues, 'may be an activist or exercise strategic voting power. The shares will only have to be used in minority lists. An important element is that unlike Pir, where we saw too rapid an outflow, mechanisms have been included to avoid overbought and oversold'. In addition, as Alessandro Rota, head of Assogestioni's research office, explains: 'It is important to point out that the fund functions as an anchor investor, its action takes the form of a co-investment initiative together with institutional investors'.

There are 369 small and medium-sized enterprises outside the Mib index, representing a total capitalisation of approximately EUR 117 billion. Excluding financial companies, this leaves 324 companies, with a capitalisation of approximately EUR 95 billion. The picture of the situation of Italian companies was outlined at the Show by Barbara Lunghi, Head of Equity Primary Markets at Borsa Italiana-Euronext. Taking a closer look at the individual segments, the Mid Cap sees 60 listed stocks with a total capitalisation of EUR 96 billion and an average capitalisation of EUR 1.6 billion. Over the past 10 years, the Mid Cap has outperformed the overall index, with its performance strongly influenced by the most represented sectors (Industrial, Financial, Technology). The Small Cap segment has 99 stocks, with a total capitalisation of 13 billion and an average of 131 million, with a range of up to 460 million. It has performed well over the past 10 years (+75%), but has underperformed the All-Share index. In the Star segment there are 69 stocks with a capitalisation of 44 billion and an average of 640 million. Finally, the Growth Market, a growth market for small and medium-sized enterprises, sees 210 companies with a total capitalisation of 8 billion and an average capitalisation of 41 million. The latter, Lunghi explained, 'is a market designed for small companies, but also as a transition gym to the main market. It offers a more streamlined and gradual listing process that is also appreciated by more structured companies. Today, about 30 companies that have moved from Growth to the regulated market are still listed and represent a capitalisation of about 10 billion'.