Primo Ventures becomes Primo Capital and expands into the Private Equity segment with its new fund Primo Health

06 nov 2024 Press Release

Primo Capital expands its reach adding a new sector and asset class to its platform dedicated to technology investments and reaching over €500 million committed over multiple funds.

The new Primo Health fund is backed by three high-standing institutional investors: Fondo Italiano d’Investimento SGR S.p.A. and European Investment Fund (both as cornerstone investors) and Fondazione ENPAM. It targets mainly Italian SMEs in the healthcare sector.

Milano, November 6th 2024. Primo Ventures has officially rebranded as Primo Capital SGR S.p.A. (the “Company”), marking its evolution into the first Italian independent investment platform dedicated to key technological sectors that are crucial for the economic development of our country. Primo Capital now operates both in the Venture Capital (VC) and Private Equity (PE) segments.

The Company started its journey within the digital sector and it has since then expanded to cover three new decisive areas: the space economy with the first space tech focused VC fund in continental Europe, the healthcare industry and climate technologies.

This sectorial growth has been accompanied by a diversification in asset classes, staying focused on investments in equity. This evolution called for a new identity of the firm, which is Primo Capital.

With over 500 million euros of assets committed, Primo Capital is now poised to drive economic growth, innovation and employment with a team that now comprises around 30 professionals working across four specialized verticals and that is supported by a skilled back-office team. With a portfolio of over 55 companies that cumulatively raised more 500 million euro and employed over 1500 people, Primo Capital aims at boosting even further the Italian and European competitiveness and productivity through innovation and technology investments.

The Company can count on a solid governance structure, which is prepared to build successive funds in each practice, starting from the launch of the second fund dedicated to the space economy. Primo Space II will be Europe's first second-generation fund fully dedicated to the space economy.

Primo Capital is backed by a diversified pool of over 25 professional investors, including social security and pension funds, corporates, family offices and institutional entities.

As a strong advocate of responsible investing, Primo Capital is also committed to ambitious ESG goals. Following the release of its inaugural ESG report in 2024, the firm has signed onto the Principles for Responsible Investment (PRI), reinforcing its commitment to making a meaningful social and environmental impact.

“With the launch of Primo Capital, we are inaugurating a new phase in our journey with an increasingly strong focus on the consolidation, structuring and performance of what we have built to date” comments Antonio Concolino, CEO of Primo Capital SGR S.p.A., “Over the last ten years we have contributed to the birth of venture capital in Italy, today Primo Capital continues its evolution, establishing itself as the platform of reference for technology investments in Italy.We look to the next two decades with the goal of continuing to actively contribute to the economic development of Italy, strengthening our international positioning and creating value and opportunities for both our investors and the national technology ecosystem.”

Primo Health- scaling innovation in the healthcare sector

Primo Capital’s new private equity fund, Primo Health has a target size of €120 million and will invest in small and medium-sized enterprises (SMEs) in the Health Care sector. The fund adheres to Article 8 of the SFDR, placing a strong emphasis on Sustainable Development Goal 3, Good Health and Well being.

Health Care is a fundamental segment of the economy and an anticyclical and resilient investment class. This industry accounts for about 10% of European GDP and enjoys secular growth trends driven by aging population, technological innovation and pressure on public healthcare systems. Historically, PE funds investing in this industry have achieved returns above the average of PE generalist funds.

Primo Health has reached its first closing at €64 million and it is backed by three high-standing professional investors: European Investment Fund (EIF), Fondo Italiano d’Investimento SGR S.p.A. and Fondazione ENPAM.

The managing team, composed by Andrea Pavero, Carlo Vanoli and Emiliano Tonelli, can count on more than 70 years of combined experience and solid expertise in both private equity and the healthcaresector. Their track record is proven by a return of more than 2,5 on capital invested and 25% IRR and is leveraging on the GPs industrial expertise of more than 15 years in health care investments.

Alessandro Tappi, Chief Investment Officer of EIF comments: “EIF is excited to join the first closing of Primo Health, to support SMEs and small mid-caps that develop and improve solutions in relation to the diagnostic and treatment of diseases, as well as their prevention. EIF’s investment under InvestEU, aims at supporting these businesses, which contribute to further innovation and increased competitiveness of the European healthcare sector, key objectives of the European Union.

“Fondo Italiano, with its funds of funds dedicated to private equity investments, has supported the development of the Italian private equity landscape. Primo Health, which Fondo Italiano has invested in as cornerstone investor, allows Primo Capital to expand its offering. Our investment in Primo Health represents our additional contribution to expand the growth opportunities for Italian small and mid sized companies operating in the distinctive health vertical, a sector of excellence of our country, offering our investors the opportunity to capture attractive returns" adds Luigi Tommasini, Head of Strategic Initiatives of Fondo Italiano d'Investimento.

"Investments in the Italian Healthcare sector logically represent an important share in ENPAM's domestic private equity because of their strategic value for the potential impacts on the growth of the medical and dental professions”, concludes Alberto Oliveti, President of Fondazione ENPAM.

The team that handled all legal aspects of the transaction consists of Alessandro Corno, Managing Partner of Alma LED, and Andrea Venturini, Co-founding Partner of Aster Avvocati Associates.

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