The global capitalist system has not yet invented anything better than a stock market listing. Excellence is Moncler, Interpump, Dexelance. Among our companies we have Italian leaders, world leaders, European leaders. These individual companies all export and do well, but they don't have the strength to open a showroom in New York or Shanghai. When we decided to invest in OVS, people said we were crazy, that we didn't look at the numbers. If someone had told me 10 years ago that I would become the largest shareholder in a company with 250 startups, I would have said we were dreaming.
We interviewed Giovanni Tamburi, one of Italy's greatest investors. After more than 40 years of career, his company Tamburi Investment Partners is now worth about 1.4 billion euros on the stock market, with stakes in major Italian luxury, fashion, and technology companies like Moncler, Azimut Benetti, Talent Garden, Bending Spoons, and many others. With me is Davide Marelli, director and founder of Piroli di Economia, and together we talked about Giovanni's history as an investor, his relationship with Italian entrepreneurs, and his new creation, Excellence. Welcome to a new episode of Aldente. Today, who is Giovanni Tamburi?
I am an investor, certainly a rather particular investor because I chose to adopt a somewhat particular formula: long-term, minority stakes, supporting companies, a more industrial than financial approach. Years ago this was uncommon, but now it's spreading. In Italy, we are number one by volume invested with this formula, and we are also among the first in general investments. Cassa Depositi e Prestiti is certainly the largest Italian investor, then three or four groups like ours have invested 5, 6, 7 billion.
So Tamburi accompanies companies instead of seeking maximum profit. His approach, as he will explain, is different from that of large international investment funds that use operations like leveraged buyouts. In practice, these funds buy a company by borrowing money from banks or other investors, repaying the debt through the company's cash flow, which then has less flexibility for growth. At the end of the process, if things go well, they sell the company at a higher price. It's clear that Tamburi's objective is not maximum profit. So why invest in this company? It's a matter of emotions.
The emotion is that you give a hand to a company with potential, that wants to succeed, that has ambitions but often cannot do it alone. The idea I had about 30 years ago was to accompany entrepreneurs, not to do leveraged buyouts that take money away from companies. Accompanying entrepreneurs in their dreams is truly a great satisfaction. Maybe 'emotion' is a strong word, but when you see companies that, thanks also to us, make a very important development path—think of OVS, Amplifon, Interpump, Moncler—you are truly happy.
Can you tell us about one of the companies you are most attached to, among those you just mentioned?
The most recent one I am most attached to is OVS. We were teased a lot when we made the investment because we were recognized more as luxury and high-end investors—Azimut Benetti, Moncler, Ros Bubois, many high-end companies. When we decided to invest in OVS, people said we were crazy. But it went very well, first of all because Stefano Beraldo, who had been CEO for many years, was a person who listened a lot and was ready to take a leap into a new phase. With our contribution, the stores changed, the advertising changed, there are many brands like Massimo Piombo. The company now earns much more, is worth much more on the stock market, and we gave stock options to many people who have realized significant gains. It's a big satisfaction because the challenge was difficult.
I'll jump in and ask a question. You spoke about the company and the people. The person can be a CEO or an entrepreneur when you choose to invest in a company. What are, in your opinion, the characteristics that distinguish a company in which you see value, and the entrepreneur or CEO in whom you can trust?
First of all, our formula of being accompaniers of projects favors this choice. We don't presume to replace the management of a company. Many structures like ours put in a CFO to control and watch the pockets of the other side. We don't do any of that. But it takes luck and attention to people. We always say, and it's quite true, that we look more at people's faces than at numbers and business plans. We certainly don't look too much at the numbers; you have to bet on people. For example, Stefano Beraldo was a manager but certainly an entrepreneur. We had the luck to bet on a person I knew for many years—he was at De'Longhi when we were also shareholders. He has great grit, great ambition. Teasing that grit and ambition, for example, the OVS story is very particular because it came from private equity funds that suffocated its development. There's little to do: when you fill it with debt, Beraldo always says he had to repay hundreds of millions of euros in debt from the previous path. Instead, we told him, 'Go ahead, invest, do what you want.' We also had to do a capital increase that today seems totally unnecessary, but it made us stronger, more credible, more projected toward the future with no limits on investment, courage, and the desire to do better.
When you meet a new entrepreneur or a new company you want to invest in, since you obviously seek excellence, where do you find it? What is excellence for you in a person or a company?
Excellence is being number one. Let's go back to OVS, then we'll talk about other things. OVS is the largest group of stores in Italy, between OVS and UPIM, so we are number one. That is already excellence. The initial philosophy we discussed with management is: since you are so widespread, if you give a good product at the right price, they can't help but buy it. Especially in small and medium towns, the local emporium was disappearing, so inserting yourself intelligently is excellence. Then excellence is Moncler, Interpump, Dexelance, this group in furniture, design, and lighting that we are putting together now, for which we recently made a very important acquisition touching online and digital distribution. These are excellences, being number one. Among our companies we have Italian leaders, world leaders, European leaders. That is excellence. Then excellence must be in the product. To be an excellent company, you must have a product that is, if not unique, very rare, very well positioned, very well appreciated by the market. The case of Moncler is unique. Azimut Benetti is the largest producer of yachts over 24 meters for more than 20 years. If that's not excellence, what is?
Very clear. You mentioned Dexelance? I was very curious to hear more about this large group. When did it start and what direction is it taking now?
It all starts from a passion of mine and my wife Alessandra for houses, design, furniture, architecture. We have always dedicated a lot of time to this passion. Over the years, TIP invested in Rosbis, the largest high-level retailer in the world, with 340 stores in the best locations worldwide. Then we invested in Azimut Benetti, Moncler, and also in Guzzini Illumination, which was a leader. Years ago, for essentially family reasons, it was decided to sell to a Swedish group that made an excellent offer. That was one of our very rare exits; we tend to stay in companies for the future. When Iguzzini was sold, Andrea Sasso, the CEO, didn't want to become an employee of the Swedish group, so he left and joined a group called Italian Design Brands (IDB). IDB had the ambition to turn small and medium Italian companies in lighting, design, and furniture into an important hub. I was very intrigued. I tried to combine personal passions with the existence of this group, which already had about ten companies. It was founded by two dear friends who had somewhat finished a development path. We all decided to list it on the stock market, even though it was very difficult. We changed the name from IDB to something more elegant, and we came up with Dexelance. We invested about 100 million, but we are ready to invest much more. We believe this hub, now with the two acquisitions made, around 400 million in revenue, can become the great high-end hub in these sectors in the world. This sector is worth 45-50 billion globally, Italy accounts for a quarter of that, so we must have a number one.
I was very intrigued. I tried to combine personal passions with the existence of this group that already had a dozen companies inside. It was founded by two dear friends who had finished a development path. We all decided to list it on the stock market, even though it was very difficult. We accelerated development, increased the group's presence in various sectors. We changed the name because IDB was a bit too accountant-like. We commissioned a study to a specialized agency, wanting to combine design, luxury, elegance, experience. The name came out, and some criticize it because it doesn't sound Italian, but it identifies well what we want to be. With the listing, acceleration, and name change, we gave a great push to a sector that represents one of the most important worlds in Italy. If there is no design, furniture, lighting, it's a huge problem. So we believe that this hub, now with the two acquisitions, around 400 million in revenue, can become the great high-end hub in the world. This sector is worth 45-50 billion globally, Italy accounts for a quarter of that, so we must have a number one. Tamburi decides with TIP to invest in high-end, perfectly putting into practice his philosophy of creating a system. So we asked him why it's important to come together and how to unite many small different brands under one umbrella.
These individual companies all export, they all do well, but they don't have the strength to open a showroom in New York, open a showroom in Shanghai, or make truly important digital investments. As the parent company, we aim to be the ones who give a hand to make these steps. We believe the response from the individual companies is very good.
