The global capitalist system has yet to invent anything better than a stock market listing. Excellence is Moncler, Interpump, Dexelance. Among our companies we count Italian leaders, world leaders, European leaders. These individual companies all export, they all do well, but they lack the strength to open a showroom in New York or Shanghai. And when we decided to invest in OVS, people said, 'These people have gone mad, they certainly don't look too closely at the numbers.' If someone had told me 10 years ago that I would become the largest shareholder in something with 250 startups, I would have said, 'Are we dreaming?'
We interviewed Giovanni Tamburi. Giovanni is one of Italy's greatest investors, who after more than 40 years of career has reached, with his company Tamburi Investment Partners, a stock market value of about 1.4 billion euros, holding stakes in the largest Italian luxury, fashion, and technology companies such as Moncler, Azimut Benetti, Talent Garden, Bending Spoons, and many others. By my side I had Davide Marelli, director and founder of Piroli di Economia, and together we talked about Giovanni's history as an investor, the relationship he has built with various Italian entrepreneurs, and his new creation, Excellence. Welcome to a new episode of Al Dente.
I am an investor, certainly a somewhat particular investor because I chose to adopt a particular formula: long-term, minority stakes, supporting companies, a more industrial than financial approach. Many years ago this was uncommon, but now it's spreading. In Italy, we are number one in terms of volumes invested with this formula, and we are also among the first in investments overall. Cassa Depositi e Prestiti is certainly the largest Italian investor, followed by three or four groups like ours that have invested 5, 6, 7 billion.
So Tamburi supports companies rather than trying to extract maximum profit. His approach is different from that of large international investment funds that use leverage buyouts. In practice, these funds buy a company by borrowing money from banks and repay the debt through the company's cash flow, reducing its growth flexibility. If things go well, they resell the company at a higher price. It's clear that Tamburi's goal is not maximum profit. So why invest in this company? It's a matter of emotions.
The emotion comes from giving a hand to a company with potential, that wants to succeed and has ambitions but often can't do it alone. The idea I had about 30 years ago was to accompany entrepreneurs, not to do leverage buyouts that take money out of companies. Accompanying entrepreneurs in their dreams is truly a great satisfaction. When you see companies that, thanks also to us – because they are still the ones driving – 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'm most attached to is OVS. We were made fun of when we invested. We are known as the luxury, high-end people, because of Azimut Benetti, Moncler, Ros Bubois, and many high-end companies. When we decided to invest in OVS, people said, 'They've gone mad.' But it went very well. First of all, Stefano Beraldo, who I had known for many years, listened a lot and was ready to jump into a new phase of OVS. 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 great satisfaction because the challenge was difficult.
Let me jump in with a question. You talked about the company and the people. The person can be a CEO or an entrepreneur when you choose to invest in a company. What characteristics distinguish a company where you see value, and the entrepreneur or CEO that makes you say, 'Okay, if I invest, I know they can deliver results or follow a positive trajectory with us'?
Our formula of being project supporters favors this choice. We don't presume to replace management. Many structures put in a CFO to control, but we don't do that. It takes luck and attention to people. We always say we look more at people's faces than at numbers and business plans. You have to bet on people. For example, Stefano Beraldo was a manager but certainly an entrepreneur. I had known him for many years from De'Longhi. He has great drive and ambition. The OVS story is particular: before us, private equity funds had suffocated its development with debt. Beraldo had to repay hundreds of millions in debt. We told him, 'Go ahead, invest, do what you want.' We even did a capital increase that seemed unnecessary at the time but made us stronger and more forward-looking.
When you meet a new entrepreneur or a new company you want to invest in, since you seek excellence, what is excellence for you in a person or a company?
Excellence means being number one. Returning to OVS: it is the largest chain of stores in Italy, after the post office or a few others, we are truly number one. The initial philosophy was: since you are so widespread, if you give a good product at the right price, they have to buy it. Especially in small towns, the local shop is disappearing, so inserting yourself intelligently is excellence. Then excellence is Moncler, Interpump, Dexelance, the group in design and lighting we are building, for which we just made a very important acquisition touching online and digital distribution. Among our companies we have Italian, world, and European leaders. That is excellence. Excellence must be in the product: you need a product that is unique or very rare, very well positioned. Moncler is unique. Azimut Benetti is the largest producer of yachts over 24 meters for over 20 years. If that's not excellence, what is?
Clear. You mentioned Dexelance? I was very curious to hear more about this large group: how it started and what direction it is taking now.
It all started from my and my wife Alessandra's passion for houses, design, furniture, architecture. Over the years, TIP invested in Ros Bubois, the world's leading high-end retailer with 340 stores in the best locations. Then we invested in Azimut Benetti, Moncler, and also in Guzzini Illumination. When Guzzini was sold to a Swedish group, the CEO Andrea Sasso left and joined a group called Italian Design Brands (IDB), which aimed to create a major hub in lighting and design. I tried to combine my personal passions with this group, which already had about ten companies. They were founded by two dear friends, and we all decided to list it on the stock exchange, even though it was very difficult. We changed the name from IDB to Dexelance because IDB sounded too bookkeeper-like. We invested about 100 million and are ready to invest much more, both directly through TIP and through club deals. We believe this hub, now with about 400 million in revenue, can become the great high-end hub in these sectors globally. This sector is worth 45-50 billion worldwide, and Italy accounts for a quarter. We must have a number one.
So Tamburi with TIP decides to invest in high-end, perfectly putting into practice his philosophy of creating a system. We asked him why it is important to come together and how so many different small brands can be united under one umbrella.
These individual companies all export and do well, but they lack the strength to open a showroom in New York or Shanghai, or to make very important digital investments. As the parent company, we offer to help them make these steps, and the response from the individual companies has been very good.
