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The landscape of the SF market in Italy is relatively nascent, marked by significant growth in recent years. The first acquisition occurred in 2019 when Patria Private Capital bought Farmoderm. Since then, approximately a dozen similar deals have been finalized. Notably, there has been a notable surge in activity in recent months, with numerous entrepreneurs in the midst of fundraising efforts.
Previously, SFClub stood as the sole professional SF investment vehicle in the region. However, various Italian family offices and private investors have consistently supported such ventures. Now, a dynamic team comprising entrepreneurs, M&A experts, and former searchers, driven by a shared passion for unleashing the latent potential within SMEs through SFs, has established Search Capital Partners. This Milan-based institutional fund is presently in the process of raising up to €30M and is spearheaded by Giacomo Andreoli and Luciano Avanzini.
Giacomo, renowned for his successful acquisition of Confinvest in 2017 (Management Buy-in), subsequently took it public on the Italian Stock Exchange at a remarkable cash multiple on initial value. He further demonstrates his acumen in the realm of SFs through the establishment of his own SF, W4H, which acquired OPT, where he currently serves on the board. Meanwhile, Luciano boasts expertise in M&A, having co-founded DGPA, alongside a distinguished career as an industrial and real estate entrepreneur and also was the lead investor in Confinvest. Leveraging their extensive backgrounds, they endeavor to utilize their network to bolster deal origination for aspiring searchers.
Their ambitious vision entails supporting 30 searchers within the next 2-3 years, facilitating a minimum of 20 acquisitions, with ticket between €1M to €1,5M. While their primary focus remains on nurturing European-based SFs, they are also committed to broadening their horizons on a global scale. They intend to seize opportunities in both emerging and established markets worldwide, with particular emphasis on Latin America and the USA. Presently, the company is actively engaging with potential searchers and has already made soft commitments to two Italian and one Spanish entrepreneurs.
Luciano Avanzini and Giacomo Andreoli jointly comment: “We are excited to announce the creation of Search Capital Partners, born from our belief that by working together, we can build an ecosystem where intelligent leadership and wisely directed capital merge to accelerate the growth and scalability of businesses. Our goal is to provide bold and capable Searchers with the resources and support necessary to turn this vision into reality. At the same time, we wish to offer our partners a unique opportunity to participate in an asset class with extraordinary growth and return potential.“
The founders continue by emphasizing, “We firmly believe that our model and vehicle can make a significant contribution to the growth of the SME ecosystem in Europe and Italy. We offer a pragmatic solution to the challenges related to generational transition, a topic that is highly relevant today and will become even more so in the coming years. We aim to contribute to the creation of a healthy and resilient economic fabric, led by competent managers in whom we are ready to invest. With Search Capital Partners, we aim to build a future where SMEs can thrive under new, capable, and innovative management, thereby fueling economic and social progress through a bottom-up approach.“
