London, Luxembourg, Milan - 6 February 2025 - EOS Investment Management Group (EOS IM), independent asset manager specialising in alternative investment funds focused on the energy and sustainable transition, is pleased to announce the first closing of EOS Next Transition Fund II S.C.A. SICAV-RAIF, a thematic private equity fund that backs Italian companies with the ambition of acting as an accelerator for companies involved in the energy decarbonisation and the ecological transition.
With a target of 150 million and a hard cap of 250 million, the Fund will invest exclusively in SMEs, mainly in Italy, through both acquisition and expansion capital transactions, active in segments of the Energy Transition, Circular Economy and Sustainable Agri-Food Systems, characterised by high growth potential and significantly contributing to equitable and environmentally balanced economic development.
Energy independence, the fight against climate change and, more generally, the ecological and sustainable transition to a post-carbon era all represent a global challenge requiring significant amounts of capital and a profound transformation of economic systems but, in the meantime, offering significant opportunities for those European and Italian companies that can count on technical and financial resources to adapt to change but also to contribute directly to the adoption of new paradigms.
Based on EOS IM's in-depth knowledge of the market fundamentals, business models and supply chains of the Fund's target sectors, EOS Next Transition was created with the aim of supporting and accelerating the growth of companies offering solutions and services in the sectors that contribute the most to the decarbonisation of the energy sector and environmental protection, to the adoption of circularity models for the reuse of resources, materials and products, or to the implementation of agricultural models that improve production efficiency and reduce emissions.
The Fund's first closing represents an important milestone in this new investment programme promoted by EOS IM, which counts on the contribution of leading private and institutional investors, including the European Investment Fund (EIF, part of the EIB Group), as well as a number of pensions fund, insurance companies and banking foundations, players that have always been committed to offering a concrete contribution to the Italy's and Europe’s sustainable transition process.
Ciro Mongillo, CEO & Founder of EOS IM Group, said: "After infrastructure investments, we are now consolidating EOS IM’s role as a specialised fund manager in energy and sustainable transition investments through SMEs, with the first closing of our new private equity fund, EOS Next Transition Fund II, dedicated to leading Italian companies in these specific verticals. This fund complements and leverages our infrastructure investment strategy in clean energy, for which EOS IM has recently raised its second fund of approximately EUR 300 million. It is designed to support the growth of Italian SMEs operating in the fund’s three verticals — companies that are typically the driving force of the national economy — by fostering their expansion, innovation, and integration of sustainable business models”. Natalino Mongillo, Founder & Group Managing Partner also added: “The Fund represents an initiative aimed at fostering industrial production growth and qualified employment in Italy, with a concrete commitment to reducing emissions. As with our infrastructure investment programs, we reaffirm our position as a player exclusively focused and specialised in the sustainable transition, even in private equity Italy is extremely well positioned and our business fabric can count on a potential pool of c. 40 thousand target companies in the renewable energy sector alone: an indication of how significant the opportunities are for a thematic fund like EOS Next Transition".
"By backing the EOS Next Transition Fund II, we are directly contributing to a greener and more sustainable future in Italy and across Europe, which remains a top priority for the EIF," said Marco Marrone, Chief Investment Officer of the EIF. "In 2024 alone, the EIF made a record investment of EUR 560 million in Italian funds, with a significant focus on sustainability. This commitment not only supports the transition to a low-carbon economy but also empowers small and medium-sized enterprises that are driving innovation and long-term economic resilience in key sectors."
The Fund’s dedicated investment team includes the senior partner Gianni Galasso, the partner Marianna Castiglioni and the senior associate Jacopo Fornaciari, who will jointly guide the growth of the portfolio companies, leveraging value creation through organic growth, international expansion and technical and digital innovation. As key differentiators, the Fund will benefit from the leadership of Francesco Caio as strategic partner and will draw on the consolidated expertise in clean energy infrastructure of EOS IM Group, as well as a permanent group of experts in the investment verticals, including Stefano Rettore, Sustainable Agriculture, and Domenico Ruggiero, Circular Economy.
Both the investment focus and the relevance of socio-environmental sustainability aspects mean that ESG issues are central to the investment process of the Fund, classified as Art. 8 EU SFDR, thanks to a dedicated framework for identifying, monitoring and reporting on specific non-financial objectives identified for each company in the portfolio.