SIMEST Equity Loans: a powerful tool for international expansion of Italian companiesApr 24 2023 EXP Legal
SIMEST, a subsidiary of Cassa Depositi e Prestiti, is committed to supporting Italian companies in their internationalization efforts. In particular, through its “Equity Loans”, SIMEST acquires minority stakes in these businesses using either its own resources or, for foreign investments, those of the Venture Capital Fund. This approach helps support investments abroad as a long-term minority institutional investor, either by acquiring stakes in foreign subsidiaries or by investing in Italian companies themselves, provided they use the resources for investments in innovation and research to gain a better position on foreign markets.
In addition to the direct investments by SIMEST, the company offers public assistance at excellent conditions in association with the Italian Ministry of Foreign Affairs and International Cooperation. This assistance can be combined with a Venture Capital Fund investment solely for direct investments abroad, further boosting the financial support available for international expansion projects.
The combined investments by SIMEST and the Venture Capital Fund may reach up to 49% of the foreign company’s capital and may not exceed the Italian promoter company’s stake. Duration of the investment: up to 8 years.
Furthermore, for investments in non-EU countries, interest grants are available to bring down the cost of the loan that the promoter company agrees with a third-party bank to finance its investment in the foreign company’s capital.
The benefits of using SIMEST Equity Loans and Venture Capital Fund for Italian companies are numerous. First and foremost, access to financial resources enables businesses to support their growth and expansion on foreign markets, increasing their global presence and competitiveness. Furthermore, SIMEST's strategic support and international network of contacts facilitate entry into new markets and the establishment of valuable partnerships.
Moreover, the long-term nature of SIMEST's investment as a minority institutional investor helps Italian companies maintain control of their businesses while still enjoying the advantages of additional financial resources. This balance ensures that companies can successfully navigate the challenges and opportunities that arise during international expansion efforts.
Finally, the collaboration between SIMEST and the Italian Ministry of Foreign Affairs and International Cooperation ensures that Italian companies receive comprehensive support that caters to their specific needs. This partnership maximizes the effectiveness of public assistance and promotes the internationalization of Italian businesses.
In conclusion, SIMEST Equity Loans and Venture Capital Fund provide an invaluable resource for Italian companies seeking to expand and establish themselves on international markets. Through the financial and strategic support offered by SIMEST, Italian companies can overcome barriers to international expansion, enhance their competitiveness in the global market, and contribute to the growth and development of Italy's economy.
Our team at EXP Legal remains committed to assisting you with any legal aspects related to international expansion and ensuring that you have the proper guidance and support throughout the process. Should you have any questions or require further information on how to leverage Simest's support for your business, please do not hesitate to contact us.