In a recent fireside chat, Federico Romoli, Head of Private Markets at Sella SGR, shared his insights on the evolution of private assets in Italy. Hosted by Giovanni Modello, the discussion covered several key topics:

1. Federico Romoli’s Background and Role at Sella SGR: Federico Romoli began his career at Fineco Bank during the late 2000s, navigating the challenges of the financial crisis. He transitioned to Sella Group in 2020, focusing on developing the private markets business and selecting investment strategies for the wealth channel.

2. The Growing Importance of Private Assets: Romoli highlighted the significant shift in the investment landscape over the past 15 years. Initially, private assets were difficult for private clients to access due to limited investment opportunities and a focus on institutional clients. However, recent years have seen increased interest and investment in private assets, driven by better education and market developments.

3. Education and Its Role in Private Asset Investment: Education has been crucial in promoting private asset investments. Romoli emphasized the need for thorough understanding before investing, both for private bankers and their clients. He discussed the importance of educating clients about private equity, its benefits, and the strategies involved.

4. Emerging Trends: Evergreen Solutions: Romoli discussed the rise of Evergreen solutions, which offer continuous investment opportunities and liquidity. He stressed the importance of selecting managers with robust deal flows and investment platforms to ensure successful implementation of these strategies.

5. Regulatory Environment and Its Impact: The regulatory framework in Italy has improved significantly, with milestones like the introduction of ELTIF 1.0 and the anticipated ELTIF 2.0. These regulations have made it easier for retail clients to invest in private equity funds, although there is still room for further improvements.

6. Manufacturer and Distributor Dynamics: Romoli explored the evolving relationship between manufacturers and distributors in the private markets. He noted that while manufacturers are getting closer to distribution, there remains a distinct separation between the two roles. The importance of brand recognition, local presence, and fair cost structures were highlighted as key factors in successful distribution.

7. Future of Private Markets and Stakeholder Involvement: Looking ahead, Romoli predicted increased consolidation in the industry and the emergence of new stakeholders, such as advisors specializing in portfolio construction. He also discussed the potential growth of the secondary market, which provides liquidity and efficiency to the private asset space.

8. Conclusion: The fireside chat concluded with Romoli expressing optimism about the future of private markets in Italy. He emphasized the need for continued education, regulatory improvements, and strategic partnerships to drive growth and innovation in the sector.

Key timestamps:

00:08 Introduction to the Fireside Chat
00:40 Career Journey and Private Market Development
02:00 The Rise of Private Assets in Italy
03:51 The Importance of Education in Private Markets
06:34 Evergreen Solutions and Their Future
09:22 Regulatory Environment and Its Impact
12:13 Manufacturer vs Distributor Dynamics
15:40 Evolving Relationships with General Partners
17:22 Market Trends and Future Predictions
20:21 Stakeholders in the Private Asset Ecosystem
22:28 Consolidation Trends in the Market
23:37 The Role of Secondary Markets in Italy
25:06 Conclusion and Closing Remarks