European SWFs can be multi-tasked with supporting the expansion of national companies, promoting the economic development of the country, and catalizing foreign investment. Italy’s CDP Equity was a pioneer among them all, and keeps evolving to adapt to today’s environment. We were delighted to speak with its CEO, Mr. Francesco Mele, about CDP Equity’s background, portfolio, and future goals.
[GSWF] How was CDP Equity born, and how has the journey since inception been?
[CDPE] In 2016, the so-called Fondo Strategico Italiano was restructured into FSI SGR and CDP Equity, with the latter absorbing the most strategic assets for the Italian economy. CDP subsequently reorganized some of its holdings, with CDP Equity managing all equity. Today, CDP Equity has around 20 direct stakes in companies and several funds through its asset managers. We play an important role in the growth of the Italian private capital by investing in direct and indirect venture capital, private equity, private debt and infrastructure funds to support companies and infrastructure throughout their life cycle.
[GSWF] What is the focus of your asset management companies, including FII, CDP VC, and CDP Real Assets?
Fondo Italiano d’Investimento (FII) has since 2010 supported the international expansion and growth of Italian SMEs operating in strategic and critical supply chains. FII manages close-ended private equity funds, both direct and funds of funds.
CDP Venture Capital (VC) invests directly and indirectly in startups, innovative SMEs and funds throughout all stages of their life cycle. The aim of CDP VC is to make the venture capital system a cornerstone of Italy's economic development and innovation.
CDP Real Asset (RA) promotes urban regeneration through the development of affordable housing, the redevelopment of existing property portfolio, the investment in tourism-accommodation and the development of sustainable infrastructure in Italy.
[GSWF] What can you share about CDP Equity’s activities (investment and operation) in 2024?
[CDPE] Notably in our equity portfolio, we increased our stake in Euronext N.V. along with Belgium’s SFPIM and France’s CDC, and we acquired a 42% stake in Italian agritech firm Diagram Group. We also completed several fund investments including FoF Venturitaly II (Venture Capital), three Private Equity funds managed by FII; social housing focused Fondo Nazionale dell’Abitare (Real Estate); and several commitments to Italian infrastructure managers. Lastly, CDP Equity became a signatory member of UN PRI.
[GSWF] CDP Equity’s partnership approach was pioneering among SWFs – what constitutes your ideal partner?
[CDPE] CDP Equity offers foreign investors access to high-value projects, institutional support and commitment to innovation and sustainability, making it the ideal partner for those wishing to invest in Italian SMEs, which are typically strong exporters and offer geographical diversification. Our ideal partner is an institutional investor with a medium to long term approach, with a special focus on sustainability and the interest to spot investment ideas which only thanks to the extremely wide reach of CDP can be exploited.
[GSWF] What are the main objectives of the 2025-2027 Strategic Plan at both CDP and CDP Equity level?
[CDPE] Over the next 3 years we intend to invest more than US$ 4 billion from own funds, attracting additional US$ 5 billion from third parties, in our portfolio companies and in new businesses, private equity, venture capital and real assets funds. In addition, CDP will launch a new program to boost the competitiveness of industrial players with high growth and aggregation potential, with the aim of creating Italian players more capable of competing internationally. We will also pursue capital rotation and crowding-in, by divesting holdings where we have achieved our objectives, and by striking partnerships with institutional investors. Further support will be provided to the development of Private Equity and Venture Capital, focusing on the development of the AI ecosystem in Italy.
[GSWF] What is CDP Equity’s headcount today?
[CDPE] At the end of 2024, CDP Equity’s full-time employees were 105, with a balanced distribution between the Milan and Rome offices. In the next three years, we expect to add further resources both to strengthen the business areas and within the support and staff areas, considering business, artificial intelligence, and innovation skills, in line with the new challenges and organization and future of work needs and with our Strategic Plan.
