Luca Mannucci is the Milan-based investment advisor for Italy’s Banca Sella Holding. He explains why the banking group invests in funds via Palico’s digital marketplace.
Why are you using a digital marketplace to invest in private equity?
LM: Gruppo Banca Sella is a fintech leader in Italy and they have an affinity for cutting edge technology. Given the exponential growth in the number of private equity and venture capital fundraisings in recent years, Palico offers an easy way to find, eventually meet with and then invest in managers with exceptional potential. We were able to invest in a short period of time through Palico’s marketplace.
But when you make investments through Palico, you’re still meeting with fund managers?
LM:Yes, that will always be key to the investment process. In primary fundraisings you’re buying into the talent of teams, not portfolios that can be evaluated. But if you use Palico’s digital marketplace to find those teams, you’re creating a streamlined process that allows you to cover a lot more ground – that’s in a world where it’s necessary to review a lot more funds just to make one investment.
So Palico makes it easier for Banca Sella to match the resources of larger limited partners?
LM: It levels the playing field with LPs who have the resources to travel the world more or less nonstop in search of promising fund investments. Palico brings funds straight to our desks in Milan and has the potential to really democratize private equity investment.
$227 Million Invested via Palico
In 2017 limited partners invested $227 million in primary fundraisings and secondaries via Palico’s digital marketplace, overwhelmingly in smaller and more specialized funds. As average fund size grows amidst a record number of fundraisings, Palico’s digital marketplace helps off-the-beaten path fundraisings and small secondary offerings standout, bringing them to the desktops and smart devices of interested investors the world over. Palico is making private equity ‘alternative’ again, even as the overall industry becomes mainstream.
"Palico allows us to commit to funds that fill holes in our investment portfolio. Its marketplace is key for portfolio diversification by strategy and geography."
Angel Garcia Diez, HNA insurance group