Things
The Fund was established with the legislative decree of 19 May 2020, n. 34, art. 43 containing "Urgent measures regarding health, support for work and the economy, as well as social policies related to the COVID-19 epidemiological emergency", with a budget of 300 million euros. Law 30 December 2020, n. 178 (budget law 2021) has allocated the refinancing of 250 million euros for 2021 and 100 million euros for each of the years from 2022 to 2035. The Fund acquires minority stakes in the risk capital of companies in economic difficulty -financial companies that propose a restructuring plan to guarantee business continuity and safeguard employment and finance restructuring programs also through business transfer. With Ministerial Decree 14 September 2022, published in the Official Journal no. 251 of 26 October 2022, the ministerial decree of 29 October 2020 containing the definition of the criteria and methods of management and operation of the Fund was amended.
Who is it aimed at?
Companies that have started a discussion at the business crisis structure of the Ministry of Economic Development, companies in economic and financial difficulty: pursuant to community guidelines (paragraph 2.2 of Communication 2014/C 249/01) or with prospective cash flows inadequate to regularly meet the planned obligations (state of difficulty not pursuant to paragraph 2.2 of Communication 2014/C 249/01), companies that satisfy at least one of the following conditions: owners of historic brands of national interest, joint-stock companies with number of employees exceeding 250 (consolidated data including fixed-term workers, apprentices and workers with part-time employment contracts, employed in local units located throughout the national territory), hold assets and relationships of strategic importance for the national interest regardless of the number of employees.
What does it predict
The Fund makes direct investments in risk capital under the following conditions: the direct participation acquired (Equity) must be minority, the overall intervention per single operation cannot exceed the amount of 10 million euros, the investment operation is carried out together and at the same time with: independent private investors who contribute at least 30% of the expected resources (in the case of operations in favor of companies in difficulty not in accordance with the community guidelines), with the proposing company which guarantees an own contribution equal to at least the 25% for small businesses, 40% medium businesses and 50% large businesses (in the case of operations in favor of businesses in difficulty pursuant to community guidelines) 5-year exit with exit conditions already defined in the investment operation. In addition or as an alternative to the acquisition of the shareholding, the Fund may make quasi-equity investments.
