investment strategy

Flexible Capital is an Italian institutional investor with a unique approach in investing in Italian SMEs.

The fund focuses on family-owned Italian SMEs with high growth potential, supporting them in accelerating both the organic and external growth to consolidate their leadership in their respective markets.

The main objective of the investment strategy is to create long-term sustainable value by promoting:

  • Strengthening of top management to maximize the execution of the organic growth path
  • Implementation of a build-up strategy aimed at fostering growth through selected strategic acquisitions
  • Optimization and digitization of business processes to improve monitoring and increase operating margins
  • Talent management through the implementation of incentive plans in line with best practices
  • ESG policy implementation (environmental, social and governance) to support responsible and sustainable development of portfolio companies

Flexible Capital focuses on majority investments, while retaining a deal structuring flexibility with minority or hybrid instruments and benefits from the support of the portfolio management team created within Private Equity for the definition and execution of value creation initiatives.

key distinctive features

CLEAR AND WELL-DEFINED
INVESTMENT TARGETS
  • Italian SMEs leaders in their reference market
  • Mainly family-owned businesses and, where applicable, to support generational transition
  • Companies with tangible growth and development potential, including buy-and-build opportunities to expand product offerings or geographic reach

PIPELINE OF PROPRIETARY
OPPORTUNITIES
  • Leverage of the proprietary network, Strategic Advisory Board, and Industrial Advisors to identify and access investment targets
  • Synergies with the broader Nextalia platform not only for sourcing but also for implementing value creation strategies

IN-HOUSE EXPERTISE ALIGNED
WITH INTERNATIONAL BEST PRACTICES
  • In-depth analysis and understanding of global trends, and subsequent prioritisation of high potential businesses
  • Proprietary deal generation through local scouting and understanding of entrepreneur and management needs
  • Post-acquisition value creation driven by an in-house, hands-on Portfolio Management team, supported by both the ESG function and the Industrial Advisors

INDUSTRIAL APPROACH TO SUSTAINABLE
VALUE CREATION
  • Definition of the 100-day plan
  • Managerialisation of the portfolio companies
  • Support for international expansion
  • Investments in digital innovation
  • Market consolidation through acquisitions
  • Active promotion of ESG practices within portfolio companies
  • Clear and defined exit strategy

SUSTAINABLE INDUSTRIAL APPROACH TO VALUE CREATION

Organic levers

ORGANIC GROWTH ACCELERATION

Investments to promote and support the growth of Italian excellences in the global market

SUPPORT IN DIGITAL TRANSFORMATION

Investments to accelerate the digital transformation of Italian companies (i.e. Big Data, Artificial Intelligence)

OPERATIONAL EFFICIENCY

Identification and definition of actions aimed at improving operational efficiency (i.e. supply chain management)

100-DAY PLAN DEFINITION

Definition of tangible initiatives to accelerate the implementation of value creation plans and to actively promote ESG factors

Inorganic levers

MARKET CONSOLIDATION VIA ACQUISITIONS

Strategic acquisitions aimed at creating players of significant scale to successfully compete in the international markets

ACQUISITION OF SPECIFIC TECHNOLOGICAL CAPABILITIES

Acquisitions aimed at internalising skills and specific technological capabilities within portfolio companies

Enablers

TALENTS AND MANAGEMENT STRENGTHENING

Investments in portfolio companies to attract human capital able to further strengthen the Management team

INVESTIMENTS IN R&D AND TECHNOLOGICAL INNOVATION

Investments to preserve and accelerate the development of Italian know-how