The flow of investments and disinvestments and the management of investments held in the portfolio over time are aimed at combining long-term growth objectives for the Company's total assets with adequate remuneration for shareholders and a careful management of risk
The strategies and guidelines concerning investment, value creation and divestment of the shareholdings in the Italmobiliare portfolio are defined by the Board of Directors and periodically adjusted to respond to market trends, bearing in mind the interest in creating medium/long-term value for shareholders. Italmobiliare aims to be an active investor.
This can be achieved both through controlling investments and through qualified minority investments, i.e. with adequate representation on the governance bodies, which set the conditions for an actual possibility of contributing to the industrial, strategic and economic growth of the companies in which investments are held. In this framework it is, in any case, possible to hold simple minority investments, especially in listed companies, as well as to act as co-investor in projects suggested by other lead investors or private equity funds.
Italmobiliare identifies its investments by searching for companies characterized by:
- Growth potential for the business and the reference market;
- Barriers to entry, due to the presence of renowned brands, economies of scale, market leadership, innovation and strategic vision;
- competence and quality of the shareholders and the management;
- attitude to innovation and sustainability
- proven ability to generate stable cash flows and profits over time.
In addition, Italmobiliare aims at achieving a balanced portfolio composition through some key criteria:
- careful risk management also as regards the phase of the economic cycle and the trends in assessing investment and divestment opportunities;
- assessment of the level of portfolio concentration and of the correlation among the various investments;
- complementarity of the investments held through direct investments and through stakes in private equity funds, minimizing possible concentrations of risk and maximizing, if present, synergies in terms of know-how, skills, relationships and opportunities for co-investment.
These key criteria, which involve strong underlying concepts to protect shareholders, at the same time make it possible to maintain a highly flexible approach as regards specific investment choices. Italmobiliare is therefore able to take up opportunities across a wide range of options and types of investment both in stock market listed companies and unlisted companies.
Italmobiliare’s investment business is not assessed based solely on purely financial return parameters, but it is driven by social and environmental responsibility and sustainability principles and the creation of sustainable economic and human value over time. The investment options do not include any areas which can directly or indirectly hinder development or violate human rights, undermine civil liberties or be based on the exploitation of children, arms trade or the production of goods that harm health.