Quadrivio group’s ceo Binello revealed plans to invest more than 1 billion euros

«The Made in Italy Fund II aims to raise 500 million euros for new business acquisition, particularly in the fashion, design, cosmetics, and perfume industries. We are soon closing at least three transactions, which we will announce shortly. These are compelling companies that maintain growth rates exceeding 20% despite the current market challenges», Alessandro Binello, ceo of the Quadrivio group, a company that has been promoting investments in specialized funds with a focus on major macro trends for over 20 years, anticipated to MFF. Yesterday’s event at the beautiful Villa Miani in Rome was dedicated to addressing these current macro trends. Quadrivio’s mission, as explained by Binello, is to offer solutions to clients navigating social and economic uncertainties, resulting in significant returns even during unfavorable conditions. «One such solution is investing. Now is an opportune time to take action, as various factors like decreased M&As and reduced escalating debt costs make it more likely for companies to consider opening up their equity», he explained.

There are currently three megatrends that are worth investing in, according to Quadrivio. The first trend is «longevity», which refers to goods and services designed for the population aged over 50, (consisting of around 40% of people in Europe and the US, ed.). The second is providing accessible luxury, as a continuation of Made in Italy Fund I. The final theme targets manufacturing and service companies that can utilize AI and innovation to revolutionize their business. «These three categories are important investment targets. We are going to invest over 1 billion euros», he explained. Looking at the second megatrend, Binello explained how the luxury market is expanding, leading to substantial price increases. «For instance, in four years, the cost of a Chanel handbag has risen from 5,000 euros to 10,000 euros, while Hermès prices have increased by 20%». This highlights the potential for larger margins in the accessible luxury, or «quiet luxury» sector. «Our companies, such as Dondup and Autry, have margins similar to hi-tech companies, ranging from 30% to 40%. These companies are a significant growth target. We believe that affordable luxury products offer a hedge against inflation», he added, even in light of ongoing discussions about the downturn in the fashion and luxury industry. In this case, the sector was growing by 20% before Covid-19, but now we are seeing a 5-10% growth. «Despite the slowdown, the overall market is still up. As long-term investors, we are not scared by this short-term downturn», he explained. Binello then provided MFF with an update on the progress of Made in Italy Fund II, which aims to raise 500 million euros. The Fund continues the work of its predecessor, which raised 300 million euros and acquired multiple fashion sector companies, such as Gcds, Dondup, and Autry, over five years. «Out of the 350 deals we reviewed, we deliberated on 12 and are presently in negotiations. The first closing took place in July, and another is scheduled for September. We are in the process of rolling closings and assessing the current trading practices of our target companies. We are soon closing at least three transactions, which we will announce shortly», the ceo clarified. Right now, the target audience comprises Italian brands. «However, we also assess a few foreign brands through our French partner to determine the most promising opportunities. Significantly more than 70% of our investments will be made in Italy», he added. As for in-house brands, Gcds in particular, the objective is revenue growth and, potentially, a future stock market debut. «While going public is a logical step, it presently appears too early, so getting to this solution requires advancement in the size of the company. I believe Moncler’s minimum size achievement, which was at least a couple of billion in revenues, is our benchmark. Our focus now is to achieve sales worth at least a billion. After reaching a certain level, listings become attractive», he concluded.

The Quadrivio group presented «Investing in Megatrends» in Rome yesterday at the beautiful Villa Miani. The event focused on the most promising megatrends to invest in today, encouraging reflection and providing possible scenarios. The meeting included a series of twenty speeches, arranged as individual speeches and three round tables, featuring experts from the industry and representatives from the business and financial sectors. Alessandro Binello, group ceo of Quadrivio, opened the proceedings. The initial panel on lifestyle and experience was led by David Pambianco, managing partner of Made in Italy Fund II, a private equity fund that will invest in lifestyle and some of Italy’s top performers. Mauro Grange, ceo of Autry (part of Made in Italy Fund I portfolio since 2021, ed.), followed. Giordano and Giuliano Calza, both co-founders and ceo and creative director, respectively, of Gcds, Guido Polito, ceo of Baglioni Hotels, and Gianluca Mollura, ceo of Mohd, were the panelists. The second panel discussed the longevity and silver economy sectors. The last roundtable was dedicated to the topics of innovation and AI. Walter Ricciotti, ceo of Quadrivio group, concluded the event. (All rights reserved)