With over 20 years of experience, IGI Private Equity is recognized as a pioneer and one of the main operators in the private equity market of Italy.
Today the core business of IGI is acquiring majority stakes through leveraged buyouts in Italian manufacturing companies with the following key attributes:
– a leadership position and solid presence in the relative niche market with an export-driven business
– operating in industrial sectors with favorable long-term structural trends
– specializing in B2B services and products, ideally designed or manufactured in Italy, with a particular focus on Industry 4.0 automation or production processes
– having a sound business plan offering scope for growth through both internal options and a clear buy & build process
– need for support to manage the organizational changes favoring the transition from one generation to the next or the integration of new professional management.
On the basis of this strategy and with its proactive hands-on approach, IGI has the strategic objective of returning between 2.5x and 3.0x on invested capital to be achieved through a combination of Ebitda incrementation, targeted M&A operations, deleverage and improved competitive positioning of the companies.
Origination of investments
IGI’s experience matured through numerous transactions in 20 years of activity has created an extensive network of contacts which includes numerous entrepreneurs, managers and professionals who have collaborated with IGI.
This network is a key element in IGI’s strategic model, not only for sourcing potential targets, but also for evaluating the people involved and the markets in which target companies operate. Talking to managers who have worked in a specific sector for many years is a fast, effective way to gather relevant, reliable information.
A key factor in IGI’s access to the private equity deal flow is the direct experience of members of the management team as company directors. Such experience enables IGI to establish direct, effective relationships with target companies and, when necessary, to carry out the pre-due diligence process without referring to third-party consultants. This gives IGI access to key data for evaluating an opportunity when official reporting is unavailable or limited.
IGI’s management team applies a rigorous selection process of new investment opportunities. Since 2011, IGI has analyzed around 600 targets, of which 10% were selected for due diligence and only 1% for investment.