Fondo Agroalimentare Italiano (FAI) has held its first closing with commitments of nearly EUR40 million. The Fund is expected to reach its EUR50 million target and maintains its EUR70 million hard cap.
Sponsored by Unigrains, the Fund’s subscribers include French, Italian and Swiss institutional investors and family offices as well as several Italian entrepreneurs.
FAI invests in minority stakes either in growth capital transactions or in buyout transactions as a sector specialist, in the capital of Italian agri-food SMEs with sales generally between EUR10 million and EUR150 million. These investments go towards financing the development of companies via external or organic growth, internationalisation or in the context of managerial transitions.
Managed by a team of three investment professionals based in Milan and with significant experience in the sector, FAI intervenes as a privileged partner alongside entrepreneurs, supporting them in their growth projects.
The Fund also benefits from the sector expertise, international network and vast resources of Unigrains, an independent investor dedicated to the agri-food sector for more than 55 years, having supported more than 1,000 companies and with more than 150 participations currently in its portfolio.
FAI will constitute a portfolio of ten or so participations, two of which have already been completed: Trasporti Romagna – a minority stake in the context of a family transmission buyout of a transporter and logistician dedicated to the agri-food sector with more than EUR125 million in sales; and Sfoglia Torino – a growth capital transaction to orchestrate a double build-up and create an Italian market savory snacking leader with sales of over EUR27 million.
A third transaction is currently under exclusivity and is expected to be finalised soon.
Francesco Orazi, Investment Director of Fondo Agroalimentare Italiano, says: “The Italian agri-food industry is number 3 in Europe, but remains fragmented with many SMEs fun by families or entrepreneurs of the first generation. With FAI, we have a role to play in intergenerational transmission by promoting external growth strategies and reinforcing management teams.”
Jean-François Laurain, CEO of Unigrains, says: “The first close of Fondo Agroalimentare Italiano represents a key milestone in the internationalization of Unigrains. The first investments in Trasporti Romagna and Sfoglia Torino perfectly illustrate our objective to provide Italian agri-food SMEs with the same financial and sector expertise that has contributed to the development of more than 1,000 companies in France these past 55 years.”
