«We will invest more in Italian companies but complete the Pnrr»- Corriere.it

Giovanni Sandri, who has been in charge of the newly established Southern Europe division of BlackRock since the end of May, which includes Italy, Greece, Spain, Portugal and Israel with about 300 people on the workforce, calls him the special observer. the Pnrr which according to the exponent of the largest global asset management company in the world (9.1 trillion dollars under management as of March 31, of which about 100 billion in Italy alone) is the keystone for foreign investors to turn their attention, that is, the capitals, to Italy and his businesses. The intention is there, says Sandri. It is a question of understanding how much the National Recovery and Resilience Plan will be implemented, because it is an important lever. The country is becoming more interesting for foreign investors – says the manager -. Across the border there is increasing awareness of the Italian entrepreneurial system. There are so many excellent companies and there is an interesting pool of companies in which to invest, not just raining. One area we are looking at is infrastructure, especially energy infrastructure, because the path is mapped out for the transition, there is no turning back.

The deal

Italy gains weight for the big world investors, therefore. On one condition, for: that the National Recovery and Resilience Plan, with its large amount of investments driving it, is completed. The Pnrr must absolutely be brought to the ground – says Sandri -. Losing him gives up a historic opportunity for the country. So far, Italy has struggled more than others to attract stable capital for structural elements such as bureaucracy and a complex judicial system, which raise the risk profile. The Pnrr makes the Italian system more attractive for an investor, because it lowers the cost of capital. Another element of discrimination is the public debt. It is growing in many countries due to the increase in interest rates, this worries us – says Sandri -. We hope that Italy will remain cautious in managing its debt. a market testing ground for the government, which initially aroused some concern abroad but now inspires more confidence, the steps it has taken so far have been reasonable.

Skin change

The opinion is relevant because BlackRock in Italy is not only growing, but is also shedding its skin. Last month the company joined Aifi, the Italian association of private equity and venture capital funds, with one goal: to expand into private equity. What does it mean? In addition to listed companies – it has many securities of the Ftse Mib index in its portfolio, from Intesa and Unicredit to Tim, from Atlantia to Generali – now the US giant also wants to invest directly in private markets and unlisted companies, so that savers and managers can insert them, diversifying, in portfolios as alternative instruments. Those that in March, for BlackRock, were worth 320 billion dollars. And which are expected to grow worldwide: between now and 2026 global assets under management in the alternative universe should rise from 17 to 23 trillion dollars (source Prequin, Hfr Industry reports). A strong trend that continues even in this market situation – says Sandri -. It’s still: We joined Aifi because it is the strategic private market for BlackRock. We register the interest of our customers in Italy and we have greatly increased our presence in the last two years.

The three directions

On the profile to keep in this period of high rates and rising inflation, Sandri says he is in line with what Larry Fink, president and co-founder of BlackRock, wrote in his last letter to investors: theoptimism with caution. It also applies to Italy where Blackrock’s plan is on three lines. One, energy infrastructure, in fact. Two, private debt, ie financing for companies alternative to banking: Not micro-financing, but lines of credit in the order of hundreds of millions in medium-large companies, more or less 100 million in revenues. The third leg of BlackRock phase 2 in Italy private equity, thedirect purchase of shares in unlisted companies, including with restructuring. We have our eyes open on the private equity market and we are trying to understand how much the Pnrr will actually help – says Sandri -. Italy in a truly interesting economic situation and in the energy transition well present both for geographical position and for European initiatives.

The energy transition

On the transition to sustainable sources, in particular, the attention of global investors remains enormous. According to calculations by the EIA, the American Energy Information Administration, a deal that should generate 125 trillion dollars in new investments by 2050. Wind, solar, compostable waste, but also regasification plants and new networks for green hydrogen— says the managers —. Italy and Spain could become the continent’s energy hubs. The Net Zero transition for strategic Europe, to become independent while globalization crumbles. After all, Larry Fink himself said that the next thousand unicorns, i.e. private companies valued at over one billion dollars, will be innovative companies in decarbonisation technologies.

The new region

A former Merrill Lynch, with a degree in Engineering from the Milan Polytechnic, Sandri was already a country manager for Italy. been promoted to manager of an area that was not previously available at BlackRock. Five countries with a value of managed assets of around 200 billion: 120 billion Italy and Greece, 50 Spain and Portugal, 30 Israel. Three offices in Tel Aviv, Milan and Madrid. Europe today is one of the most important regions for BlackRock, more than the US for growth, says the manager. And the expansion plan on private markets also concerns other countries, of course. It is no coincidence that BlackRock announced on June 8 that it will acquire the London-based Kreos Capital, a private debt company. And it won’t be the last, says Sandri.

Subscribe to the newsletter of The Economy

Whatever it Takes by Federico Fubini

The challenges for the economy and markets in an unstable world

Europe Matters by Francesca Basso and Viviana Mazza

Europe, the United States and Italy that count, with innovations and important decisions, but also small important stories

One More Thing by Massimo Sideri

From the world of science and technological innovation the news that changes our lives (more than we think)

And don’t forget the newsletters
The Economy Opinions and the Economy 6 pm