Press Releases
Opera, the first international closed-end fund investing in goods and services typical of the Italian lifestyle
Rome, 16 May 2000 - Renato Preti has created, together with other consultants and the Bulgari Group, OPERA, the first international closed-end investment fund that will invest primarily in companies that provide Italian made goods and services. The fund has the aim to raise Euro 155 million to be invested in medium sized businesses operating in sectors such as quality food and wine, fashion and leather goods, jewellery, selective retail, interior design and tourism. The peculiarity of OPERA is that it takes into account that many medium-sized Italian companies have good quality products but lack of strategic vision, organisation and adequate marketing, branding, commercial and financial policies. OPERA represents a very innovative approach as it is a combination of a closed fund and a strategic investment company. This fund will be mainly characterised by a significant flexibility in the type of investments, by a strong involvement of the participating companies as well as a commitment to subsequent acquisitions in the same segment. More specifically, the fund will support the existing management of the participating companies with specialised consultants in order to provide these companies with new branding, marketing and commercial policies. Furthermore, new distribution techniques, such as e-commerce, and a more international approach will be introduced. OPERA is based in Luxembourg and is managed by a company (also based in Luxembourg) liable for choosing strategic investments. The investors of the fund will be Bulgari (which has already signed for Euro 26 million) and several highly qualified foreign investors. Furthermore, the Bulgari Group will also hold a 50% investment in the management company. The Board of Directors of the management company is composed by: Delio Fabbri, President (Vice President of Ferrero International), Francesco Trapani (Chief Executive Officer of Bulgari S.p.A.), Renato Preti (former Director of Morgan Grenfell Private Equity), Antonio Belloni (President of Procter & Gamble Western Europe), Aref Lahham (Chief Executive Officer of the fund 'Orion') and Gary Gartner, a well known US corporate-law attorney. The Board of Directors will be assisted in the investment selection process by some advisory companies amongst which Adamas, a M&A firm, as Italian advisor, as well as by Giovanni Frigieri (a former director of the merchant bank of Banca Commerciale Italiana), Renato Preti and Magnolia Albertazzi (partner at Adamas). These consultants have a solid experience in private equity as well as in the M&A business and have, during the last ten years, completed successfully many important deals. Bvlgari is today a leading global brand in the luxury goods market. In 1999, it posted a consolidated net turnover of Euro 485 million, an increase of 33% compared to the previous year. Listed since 1995, the Bulgari Group has currently a market cap of around Euro 3.6 billion; sales of the first three months of 2000 grew by a further 56%. Francesco Trapani Chief Executive Officer of the Bulgari Group commented: 'our participation in the OPERA fund and in its management company represents a very interesting investment to Bulgari within an area - the Italian life-style - which is very close to us. We believe that our know-how and the experience of Renato Preti's team will help maximise the investment of this new venture.' Renato Preti points out that 'this initiative is the upshot of the experience acquired within the private equity sector and the knowledge of companies with interesting products that lack of strategic vision to perform to the full'. 'Bulgari's presence,' continues Preti, 'guarantees access to specific know-how and experience of what we consider to be a true reference model'. Italy's private equity sector offers high levels of return (between 1990 and 1999, the annual return of investments made in Italy averaged out at more than 40% - higher than those in other European countries), significant growth rate (in 1999 private equity investments have raised by 88%) and a great opportunity for further development. The private equity sector invests less than 2% in M&A of the Italian market.