8
BPM is a cooperative bank listed on the Milan stock exchange,
meaning that each shareholder is entitled to one vote
irrespective of the number of shares held. Investindustrial
was the single largest shareholder of the bank for two years,
having entered through an agreement to effectively become
the cornerstone investor in an
€
800 million capital increase in
2011 during a critical time for the bank. Investindustrial exited
in early 2014, having been unable to convince the balance of
shareholders about the benefits of converting into a joint-stock
company. Investindustrial made a modest financial return but
left the bank with a significantly healthier balance sheet and
operating performance relative to the pre-entry position.
Looking forward to 2015, Investindustrial continues to see
strength in the financial markets in light of the gradual European
economic recovery, largerly in reaction to the ongoing monetary
stimulus of the European Central Bank. As governments of
crisis countries continue to repair their balance sheets, trim
capital expenditure and enforce capital requirements on
financing institutions, the need for private ownership and capital
persists. Investindustrial considers the fragmented European
mid-market environment to be one that creates highly attractive
opportunities for those able to source and execute complex
quality deals.
Another key competitive advantage is the intense focus
Investindustrial places on long-term portfolio company health.
This remains of paramount importance to both the group’s value
creation map and its position as a world class investor. Attractive
financial investment returns for Investindustrial are achieved by
setting up investee companies for long-term future success after
a period of repositioning. Ducati for example, which was sold to
the Volkswagen group in 2012, is now thriving at its new home
where it is considered a highly-prized asset within an already
eminent portfolio.
Adding value through active operational improvement and
globalisation, with a high sense of urgency, remains the
focus of Investindustrial’s investment strategy. It has become
equally important to keep a cool head and maintain rigour
across all the firm’s activities, with clear-sighted leadership
and a highly responsive organisation imperative to converting
today’s opportunities into tomorrow’s investment performance.
To further institutionalise this discipline throughout the
Investindustrial team is a priority as we continue to refine how
we operate in achieving superior risk adjusted long-term returns
for our investors.
In addition to the objective of achieving superior returns, in 2014
Investindustrial and the team contributed
€
1.7 million to Invest for
Children (
), Investindustrial’s corporate
foundation, during 2014. Contributing to the community is an
integral part of being a responsible long-term investor.
In 2014, Investindustrial’s advisory teams and investment
companies were strengthened with the addition of public market
equity and debt specialists to increase the ability to source and
assess relative value across the entire mid-market.
Investindustrial has a stronger and more experienced team than
ever before in an industry where the relentless drive of talented
professionals distinguishes the outperformers. Investindustrial
2015 began with a high level of activity across investments,
exits and portfolio developments, on which we look forward to
providing you with a detailed update in next year’s annual review.
20
14
Strategic Commentary
//
ANNUAL REVIEW & SUSTAINABILITY REPORT
“The current environment is one in which
Investindustrial and its managers are
accustomed to operating and in which they
have consistently generated attractive returns
through patience, industrial due diligence and
local insight“.
€
0.8
bn
€
1.1
bn
At the end of 2014
Investindustrial had
approximately
€
0.8 billion
of equity to make further
acquisitions. Capital
availability is a strategic
advantage in the current
market environment.
Starting with the successful
sale of 49.9% of PortAventura
in December 2013,
Investindustrial exited Avincis,
Banca Popolare di Milano,
Svenson, Applus and AEB.
The six exits achieved
€
1.1
billion of distributions to
investors.
€
0.8 billion of equity
for investments
Selective exits completed
with
€
1.1 billion of proceeds
2014
Key
events
