VENTURE CAPITAL: ITS ROLE IN INVESTOR PORTFOLIOS

For private markets in Italy these are times of turbulent change. For many investors, allocating shares to private markets is no longer a residual choice, but has in fact become a pillar of their strategy. The shift has been aided by the 2015 changes to regulatory constraints on investments and by the huge capital flows from the Recovery Fund and the Horizon Europe programme, which are generating notable innovation in the Italian economy.
Indeed, what these markets are appreciated for is their ability to achieve higher returns than traditional investment alternatives, their diversification and their decorrelation from regulated markets, which means that asset prices are less volatile, less sensitive to sentiment and more closely linked to corporate fundamentals.

 

HELPING UNLISTED COMPANIES GROW

Kairos has therefore decided to expand its offering in the illiquid investment segment with the introduction of Kairos Ventures ESG One. This, one of the company’s first venture capital products, is a reserved closed-end fund under Italian law that invests in innovative start-ups and SMEs in early and late stages.
The target companies usually stand out for their high growth and profitability prospects – features that lead us to believe that the intrinsic value of the company will increase in the future. Our goal in creating this type of product is to raise capital from investors and to employ it in unlisted companies with high development potential. Innovation is indeed an indispensable driver for the growth of industrial countries because it allows them to stay competitive and stimulates new investment and new consumption.
Kairos Ventures ESG One supports entrepreneurs committed to growing and consolidating their companies. The Fund concentrates on four areas:

  • Blockchain
  • Software
  • Artificial Intelligence
  • 5G
  • Microchip
  • Internet of Things
  • Data Center
  • Big Data Analytics

KEY SUCCESS FACTORS

Covid-19 accelerated the digitalization of all industries, one of Horizon Europe top priorities.

More than € 149 billion1 will be devoted to innovation and digital investment through Recovery Fund.

  • Lab Services
  • Diagnostics
  • MedTech
  • Telemedicine
  • Animal Health
  • Medical Devices

KEY SUCCESS FACTORS

More than € 5.3 billion dedicated to European Health through EU4Health2.
The pandemic improved the need for home care devices and services and telemedicine.

  • Satellite Launch
  • Ground Station
  • Space Research
  • Manufacturing
  • Drones
  • Space Debris
  • Earth Observation

KEY SUCCESS FACTORS

New space economy has been identified as a major driver for innovation to boost European industrial competitiveness3.

The global new space economy is expected to reach more than $ 1.1 trillion4 by 2040(1)

  • Renewables Technologies
  • Energy Storage
  • Electrification
  • Smart Cities
  • Hydrogen
  • CleanTech

KEY SUCCESS FACTORS

The sector pushes the new next: sustainable agriculture, renewable energy, hydrogen, energy efficiency and ecosystems protection.

Approx. 30%5 of the Recovery Fund in Italy will be dedicated to green revolution and ecological transition.

Sources:
(1) European Commission, Recovery Plan for Europe.
(2) European Commission, EU4Health 2021-2027 – a vision for a healthier European Union.
(3) ASI, Strategic Vision Document 2016-2025.
(4) Italian Industry – the space economy takes flight: within ten years it will be worth a thousand billion dollars. And in Italy…, by Laura Magna, 18 October 2021.
(5) Italian Government, Presidency of the Council of Ministers, National Recovery and Resilience Plan, 5 May 2021.

 

 

THE FUND’S APPROACH TO ESG

Kairos Ventures ESG One is one of the first venture capital funds on the Italian market to promote the principles of sustainability. This is also what makes it a unique product in the illiquid investment landscape.

Kairos integrates ESG criteria into its investment process and is committed to monitoring risks and safeguarding sustainability opportunities, in line with the company strategy and philosophy it applies throughout the investment and divestment processes.

Among other things, the Fund also promotes environmental and social characteristics – provided that the investee companies comply with good governance practices – with partial use being made of sustainable investments. The Fund therefore falls under the category of products covered by Article 8 of the SFDR.

 

THE UNIQUENESS OF THE KAIROS OFFER

With this new financial solution, Kairos has created a product with features that are quite distinctive in certain respects. Kairos Ventures ESG One is in fact mainly focused on Italy and can thus grasp the opportunities offered by the country’s current climate of development and growth. The product’s funding target is €100 million: this will make it one of the largest venture capital funds in Italy and will consequently allow for risk dilution, with investment in around 40 companies.
Kairos Ventures ESG One is aimed at professional investors (by right and on demand) and also at non-professionals with a subscription of no less than €500,000. Tax incentives for venture capital products make the investment even more attractive for both individuals and legal persons.
Finally, venture capital funds are a way of diversifying the asset allocation of an investment portfolio because they are decorrelated to market trends.

 

THE MANAGEMENT TEAM

Incisive knowledge of the Italian market and tech start-ups, coupled with an extensive network of relationships gradually and consistently built up with an array of outside advisors and technology experts, make the Kairos venture capital team a group of professionals who offer unmatched support to entrepreneurs as they grow, guiding them to their goal of stock exchange listing and the performance of M&A operations.

Roberto Zanco
Roberto Zanco
Head of Alternative
Illiquid Investments
Elisa Schembari
Elisa Schembari
Kairos Ventures ESG One
Key Partner
To learn more about Kairos Ventures ESG One CLICK HERE >
To apply with an
innovative project

MAIL US >
To invest
in the Fund

CONTACT US >

The Kairos Group is a signatory of the PRI, the United Nations initiative which contributes to developing a more sustainable global financial system.

ensign’ is the iconic emblem of the responsible commitment of Kairos towards a better world and its conviction that sustainable development is the business model of the future which must be implemented now.

Advertising message for promotional purposes. What is contained in this document is a marketing communication, is not contractual in nature, is not required under a legislative provision and is not sufficient to make an investment decision. This document has been prepared for information and illustrative purposes only, does not constitute an offer, a personalised recommendation or an investment solicitation.
Kairos Ventures ESG One is an Italian Alternative Investment Fund (AIF) managed by Kairos Partners SGR S.p.A. (“Kairos”). A summary of the rights of participants in the Fund is available in Italian and English at the following link: https://www.kairospartners.com/sintesi-dei-diritti-dei-partecipanti-al-fondo-it-en/. Before making a final investment decision, please consult the Offer Document and the Key Information Document (KID) of the Fund available in Italian, in electronic or paper format, at the Placement Entities, the registered office of Kairos as well as on www.kairospartners.com and the annual and half-yearly reports if more recent. Past performance is not a reliable indicator of future results. The Kairos Ventures ESG One synthetic risk indicator is rated 6 out of 7, which corresponds to a medium- to high-risk category. The synthetic risk indicator expresses how likely the product is to incur monetary loss due to market changes.

THE NEW
DIGITAL MAGAZINE STORAGE
IS ONLINE

d