Fondo Italiano’s FIPEC Fund has made significant strides in its fundraising efforts, recently reaching a notable milestone of €113 million in its second close, while eyeing a target of €150 million. This achievement, reported on March 18, 2025, highlights the growing importance of co-investment strategies in supporting the development of small and medium-sized enterprises (SMEs) in Italy.
Launched in 2023, the FIPEC Fund focuses on co-investing alongside private equity firms, specifically designed to bolster Italian SMEs with revenues of up to €300 million. By channeling funds into these businesses, the initiative aims to foster innovation and growth within various key sectors critical to the Italian economy.
The fund targets six key sectors including made-in-Italy supply chains, life sciences, industrial technologies, information technology (IT) and digital services, agrifood, and tourism and hospitality. This diverse sectoral focus positions FIPEC not only as a financial investor but also as a catalyst for sectoral modernization and efficiency improvements.
FIPEC typically invests between €5 million and €15 million in minority stakes during acquisitions or when aiding portfolio company expansions. This investment strategy allows the fund to scale its impact across a thoughtful selection of businesses poised for growth.
In its first year of operation, FIPEC has already deployed 25% of its capital across four co-investments. These investments include notable companies like Errevi System, a cloud and cybersecurity IT services provider, in partnership with Kyip Capital; The Nice Kitchen, a producer of professional kitchen accessories, in collaboration with 21 Invest; Eurosirel, a medical devices and cosmetics manufacturer, supported by Arca Space Capital and Alto Partners; and CRM – Casa della Piada, a baked goods firm in partnership with Wise Equity.
Looking forward, FIPEC anticipates completing between 10 and 15 investments in total as it continues to solidify its role as an essential co-investment vehicle for private equity players operating in Italy's vibrant economic landscape. This growth is particularly significant as Italy’s private equity ecosystem experiences ongoing expansion and transformation.
Fondo Italiano, the parent organization of the FIPEC Fund, was established in 2010 as an initiative backed by Italy's Ministry of Economy and Finance. Since its inception, it has amassed a substantial portfolio, currently managing €4 billion across 21 closed-end mutual funds. These funds engage in both direct investments and fund-of-funds strategies, allowing for a diverse approach to capital management and deployment.
The strategic focus of FIPEC enhances the role of private equity in fostering the development of SMEs, thereby driving sectoral innovation and contributing significantly to Italy's economic growth. By investing in a diverse array of sectors, the fund not only empowers small businesses but also promotes the overall health and resilience of the Italian economy.
As FIPEC strives to reach its €150 million target, industry observers are watching closely, recognizing the potential impact of such investment strategies on Italy's SMEs. The focus on co-investments reflects a growing trend within private equity to collaborate more closely with and support smaller enterprises, which are often seen as the backbone of the national economy.
The significance of FIPEC’s operations cannot be overstated; as it invests and nurtures the next generation of Italian businesses, it paves the way for a more robust and innovative economic future for Italy. The success of the fund thus far provides a promising glimpse into the increasing sophistication of Italy's private equity landscape and the pivotal role funds like FIPEC will play moving forward.
