Italy: Pension funds association expects to raise €500-600m for FoFs with EIF

Rome: Assofondipensione, the Italian pension funds association, expects to raise €500-600m from approximately 15 pension funds for the real economy project set up with the European Investment Fund (EIF), Giovanni Maggi, president of the association, told IPE.

He said the association will soon announce a more precise amount it expects to raise, adding that the Real Economy Project with Cassa Depositi e Prestiti (CDP) in Italy raised €500m from pension funds.

Assofondipensione and EIF are looking to establish fund-of-funds (FoFs) for infrastructure, private equity, private debt, and possibly venture capital investments in Europe, with a share of investments in Italy of 25-30% of total assets, he added.

The association signed a memorandum of understanding (MoU) with the EIF at the end of June in Rome to officially kick-start the programme, pushing its members to invest in the FoFs set up with the EIF.

“The EIF is also committing to providing free training to pension funds [members of Assofondipensione] on private markets, even if pension funds decide not to join the project,” Maggi said.

“We continue to pursue a systemic approach, making a contribution to [support] the Italian and the European economy,” he noted.

The association and EIF are exploring future synergies to support small and medium-sized enterprises (SMEs) in Europe. The EIF will hold a meeting in Paris with Italian pension funds, and a further meeting will take place at the European Investment Bank in Rome in October.

“Then, the EIF will have one-on-one meetings with the pension funds to raise the money,” Maggi said.

The project with the EIF runs in parallel to the partnership launched by Assofondipensione with CDP and asset management firm Fondo Italiano d’Investimento, which set up three FoFs for private equity, private debt, and infrastructure investments in Italy.

Maggi said that the project is progressing, with continuous discussions with CDP, and that there will be another event on 19 September to re-introduce the infrastructure FoF and push for investments.

Arco, the pension fund for workers employed in the wood, furniture, forestry, brick and concrete sectors, and Concreto, the pension fund for workers in the cement and construction materials industries, have so far invested in the infrastructure FoF.

Fondo Italiano D’investimento has already started a roadshow to market a new FoF for private equity investments, part of the real economy project focusing on Italy, to pension schemes, Maggi said. The firm is seeking to raise €600m for the Private Equity Italia Tre FoF, it said.