In April 2025, the Italian government launched the Fondo Nazionale Strategico Indiretto (FNSI), a €1–1.5 billion closed-ended fund-of-funds designed to channel long-term capital into Italy’s small- and mid-cap listed companies. Anchored by the Ministry of Economy and Finance (MEF) and managed by Cassa Depositi e Prestiti (CDP), FNSI represents a concerted public–private effort to strengthen domestic capital markets and support strategic growth sectors. Domestic pension schemes have emerged as the primary target for early-stage commitments—both for their long-term investment horizons and their potential “firepower” once pension-investment rules are relaxed.

A Public–Private Partnership Model
FNSI operates as a fund-of-funds: the MEF underwrites closed-ended Alternative Investment Funds (AIFs) with 5–7-year lifespans, while CDP sources and monitors the underlying SME portfolios. This setup ensures that public capital is leveraged to attract and de-risk institutional investments in Italian enterprises.

Targeted Companies
The fund’s mandate focuses on small and mid-cap firms listed on Borsa Italiana. By providing growth equity injections to profitable, fast-growing businesses, FNSI aims to bolster market liquidity, deepen Italy’s domestic equity universe, and elevate national champions to compete more effectively abroad.

Alignment with Long-Term Liabilities
Closed-ended structures, defined dividend policies and multi-year horizons closely match pension-fund liability profiles. As a result, schemes such as Enpam—the country’s largest pension provider—have signaled keen interest. Alberto Oliveti, Enpam’s president, has lauded FNSI’s potential to support SMEs, noting that Enpam routinely backs similar opportunities through transparent, rigorous selection processes.

Regulatory Tailwinds
Undersecretary Federico Freni of the MEF has indicated that forthcoming amendments to pension-fund investment rules could unlock significant “capital firepower.” By raising pension schemes’ investment limits in strategic domestic vehicles, policymakers hope to mobilize billions more into Italy’s real economy.

Asset Managers’ Involvement

Eurizon: Building the SME Universe
Eurizon’s CIO, Alessandro Solina, reports that the firm has identified roughly 150 investable SMEs—including around 60 FTSE Mid Cap constituents—meeting a €40 million free-float threshold suitable for inclusion at up to 10 percent of a fund portfolio.

Amundi: Financing Transition Needs
Amundi plans to engage its open pension fund and insurance affiliates alongside external pension schemes. CIO Francesco Sandrini emphasizes that Italy’s environment and digital-transition efforts alone require some €20 billion in equity capital—an urgency amplified by current geopolitical pressures.

Generali Investments: Due Diligence in Action
Generali Investments has initiated bottom-up research across the SME segment to underpin equity allocations in client unit-linked plans, reflecting widespread industry backing for a focused approach to domestic growth opportunities.