The “Patrimonio Rilancio” project, an extraordinary EUR 40 billion fund envisaged by the MEF in the post-pandemic period to support larger Italian companies who report revenues of more than EUR 50 million, is now getting into full swing, with investments in the first management vehicles selected under the National Fund for Enterprise Restructuring (NFER). We talk about this with Franco Carlo Papa, one of the independent experts accredited at the Ministry of the Treasury for the asseveration of the operations of the National Fund for Restructuring, which foresees interesting developments for the specialised private equity industry. TMA: How is this initiative articulated? Papa: In detail, the actions are articulated around a National Fund for Temporary Support (NFTS) for interventions in healthy companies that have been impacted by Covid-19. These measures are part of the temporary framework through loans of various types and capital increases. This is flanked by a second initiative known as the Free Market, which envisages the involvement of other market investors and is articulated in two separate instruments: the National Strategic Fund (NSF), which makes both direct and indirect investments in healthy companies with solid growth prospects. The company is not in difficulty, and the investment by the Fund takes place, together with co-investors, through capital increases and convertible bonds. Finally, there is the National Fund for Enterprise Restructuring, dedicated to investments in companies characterised by temporary asset and financial imbalances but with adequate profitability prospects. Operations may be direct or indirect through the subscription of UCI units. TMA: What has been the operation of this project so far? Papa: Since its inception and up to 30th June 2022, CDP has disbursed about EUR 300 million in 13 operations, mainly through bonds. Among those that have requested support from “Patrimonio Rilancio” are about 50 companies concentrated in the following sectors: construction, infrastructure, food industry, transport, fashion, and tourism. None are listed on the stock exchange. Pizzarotti group and PSC are some beneficiaries. PSC, after the acquisition of Italtel, filed for composition with creditors (“concordato preventivo”). TMA: So far rather limited involvement. Papa: Yes, compared to a total of EUR 40 billion. But now the Fund, with particular regard to investments in restructuring, given the worsening macroeconomic context, which sees a rise in inflation and energy costs increased by the conflict in Ukraine, can act as a driving force to save many companies and with them jobs. Given the limits envisaged for direct investments (Article 24 envisages an intervention of EUR 250 million, a significant figure for the size of Italian companies), it seems reasonable to expect CDP to be more involved in investments in UCI. TMA: Just in recent months we have seen the first. However, the required size of these UCI, no less than 100 million, is considerable. Papa: In my opinion, some operators, if they are “sub-threshold” (i.e. below the minimum UCI size of EUR 100 million and minimum investment of EUR 30 million), could aggregate to achieve the aforementioned co-investment objectives with CDP, or set up dedicated UCI. TMA: the FNRI can invest in debt, equity or convertibles. Which do you think will be the most used technical form? Papa: Given the above and the market context that impacts on the key economic drivers of the companies and their sustainability, the investment of the assets in equity would seem to be the most predictable.