Investment Strategy

Clessidra Private Equity aims to build a diversified portfolio of equity investments in leading medium to large-sized Italian companies, with a significant prospect for growth and an indicative enterprise value ranging between Eur 100 million and Eur 500 million. The engagement of portfolio companies’ management team is considered a fundamental requisite for a successful investment. Clessidra Private Equity seeks an alignment of interests with the management team of each target company, to whom it leaves the role of strategic direction, and an adequate operational autonomy.

Clessidra Private Equity - Market Opportunity
Clessidra Private Equity - Market Opportunity

The Italian upper-middle market remains under-penetrated by private capital and presents significant opportunities for proprietary transactions. In this context Clessidra Private Equity selects for its investments the Italian mid-sized companies showing superior performance, leading market positioning and further potential for growth.

  • Italy is the 2nd manufacturing economy in Europe, the 2nd largest exporter of industrial goods in Europe and the 8th largest economy in the world
  • About 65% of the 6000+ Italian medium-sized companies are family-owned and likely to face succession issues over the next years
  • A vast network of solid relationships with the Italian business community allows Clessidra Private Equity to leverage on a privileged position for structuring proprietary / bilateral transactions.
Clessidra Private Equity - Investment Strategy
Clessidra Private Equity - Investment Strategy

Clessidra Private Equity is an engaged investor and aims to add value at all stages of the investment cycle. The team applies a holistic approach to investments leveraging on an extensive and structured network of experienced industry-specific specialists.

  • Disciplined investment approach leveraging on Clessidra’s extensive network in terms of sourcing, favored by clear investment selection and revised governance.
  • Italian mid-cap buyouts with a clear focus on “Clessidra’s 5 core industries”.
  • Control or significant minority stakes in companies with an indicative enterprise value ranging between €100 million and €500 million.
  • Target equity ticket €40-€100M, with possibility to pursue larger deals by offering co-investment opportunities to LPs.
  • Incorporation of ESG principles in all phases of the investment cycle, from pre-investment analysis to exit.
Clessidra Private Equity - Portfolio Management
Clessidra Private Equity - Portfolio Management

Clessidra Private Equity establishes a fully collaborative approach with acquired companies’ top management to develop strategic priorities aimed at achieving full potential within the holding period, identifying the most fitting exit option for each company.

  • Managerialization of portfolio companies coupled with strong partnerships with entepreneurs to effectively support the growth path of the business.
  • Hands-on ownership of portfolio companies to support an effective value creation, leveraging on a repeatable and codified portfolio management approach to reach sustainable and long term growth and profitability.
  • Engagement with portfolio companies to develop an ESG action plan and promote their commitment towards sustainability.
  • Constant monitoring of company’s progresses vis-à-vis ESG topics through collection of cross-portfolio KPIs on an annual basis.
  • Full disclosure to investors of ESG performance of portfolio companies based on annual KPIs collection.

Clessidra Private Equity has identified and selected five core industries to focus on its investment effort.

Clessidra Private Equity - Industrial Goods & Services

INDUSTRIAL GOODS & SERVICES

Clessidra Private Equity - Financial Services

FINANCIAL
SERVICES

Clessidra Private Equity - Consumers Products & Retail

CONSUMER PRODUCTS & RETAIL

Clessidra Private Equity - Business Services

BUSINESS
SERVICES

Clessidra Private Equity - Healthcare

HEALTHCARE

Clessidra’s 5 core industries represent historically the bulk of the Italian private equity market and show attractive fundamentals for investors.
In these selected industries Clessidra Private Equity enjoys a significant competitive advantage, leveraging on the unparalleled investment track-record and longstanding experience of its senior investment professionals as well as industry specific expertise and deep relationships in the relevant business communities of its industry specialists.

Value creation
themes

Clessidra Private Equity is well positioned to be the partner of choice of entrepreneurs to address succession issues, strategic repositioning and international expansion.

Clessidra Private Equity - Support Made in Italy

Support “Made in Italy”
for the global market

Clessidra Private Equity invests in companies operating in sectors where Italy has global leading positioning in the competitive landscape (i.e. “Made in Italy”) and further potential for international expansion. Target companies include leaders of excellence with strong exports and high quality products.

Clessidra Private Equity - Local Champions

Create local champions
in the domestic market

Clessidra Private Equity selectively invests in strong local players with a view to create a domestic champion serving the Italian market, capable to take advantage of under penetration and to achieve profitability improvement through increased scale, productivity and efficiency.
This is particularly attractive in sectors featuring consolidation opportunities, high barriers to entry and earnings visibility.

Clessidra Private Equity - Family owned business

Develop and institutionalise
family-owned businesses

The Italian economy is characterized by the presence of family owned businesses, many of whom facing similar challenges. Clessidra Private Equity investments in family businesses provide a combination of solutions for generational transition, support to strategic decisions, assistance with expansion into new markets and reinforcement of the management team. Investments are typically pursued alongside the prior owners, enabling the firm to retain the knowledge of the business.

Clessidra Private Equity - Build strategies

Execute buy and build strategies
in fragmented industries

As part of its investment thesis, Clessidra Private Equity will pursue opportunities to execute a number of small buy and build investments as well as large transformative acquisitions for its portfolio companies. Since inception, Clessidra Private Equity has executed 27 add-on acquisitions across CCP funds.

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