Singapore’s state investment company Temasek has expanded its presence in Italy by acquiring a 9% strategic minority stake in the management company of Fondo Strategico Italiano (FSI), Italy’s largest single-country growth equity fund. The announcement was made on September 28, with Temasek also committing additional capital to FSI’s forthcoming investment funds.
FSI manages approximately €5 billion (S$7.3 billion) and focuses on supporting mid-market companies in Italy. These firms typically report revenues between €70 million and €200 million and earnings before interest, taxes, depreciation, and amortization (EBITDA) ranging from €10 million to €30 million. Many of these are family-owned, export-oriented businesses that serve as key contributors to Italy’s national economy, with robust industrial capabilities and an international footprint.
Temasek has maintained a presence in Italy for over a decade, holding direct and indirect stakes in several prominent companies in the luxury fashion sector, including Ermenegildo Zegna Group, Golden Goose, and Moncler. It has also been a significant investor in FSI’s prior funds and its scale-up capital solutions fund that targets high-growth small and medium-sized enterprises (SMEs) in the country.
The partnership is designed to deepen Temasek’s engagement with Italy’s mid-market segment, where institutional equity investment remains relatively limited—only about 10% of approximately 10,000 qualifying companies have taken on such investors or pursued public listings, according to Temasek.
Nagi Hamiyeh, president of Temasek Global Investments, described Italy as a central component of the company’s broader Europe strategy. “Over more than a decade, we have built our portfolio and networks steadily, and stepped up the pace in recent years. Our partnership with FSI extends that into the mid-market,” he said. Hamiyeh emphasized Temasek’s ability to leverage its sector expertise and global connections to help Italian firms explore new markets and achieve growth objectives, while maintaining governance oversight without interfering in daily operations.
FSI’s leadership also highlighted the strategic benefits of the collaboration. Maurizio Tamagnini, FSI chief executive and managing partner, noted that Temasek has been a founding investor in FSI’s funds, and that the partnership strengthens their ability to unlock value across Italian companies of various sizes. “Temasek’s presence alongside our partners sharpens that ambition further, and it is the ground on which we will build the next phase of FSI,” he added.
Barnaba Ravanne, FSI co-managing partner and chairman of its investment committee, observed that the association with a global investor like Temasek will accelerate the international expansion of FSI-backed companies. He also underscored the effectiveness of a focused, single-country investment strategy carried out in close collaboration with entrepreneurs and local partners.
Temasek’s portfolio report released in July indicated that around 12% of its assets are concentrated in the Europe, Middle East, and Africa region, predominantly in Europe. The company maintains offices in major European cities including Brussels, Paris, and London, as well as key locations across Asia and the Americas.