It must be that it is its internal balance

In the next year, the second son of Luciano Benetton should begin to play a more active role in the Group of clothing. But this reserved quadragénaire did not wait the passage of family relay to forge a career: after a passage in the American business Goldman Sachs Bank, it has indeed created a group of private equity funds active in France and Italy to SMEs in the industry. A new Fund, 21 Centrale Partners III, has been lift EUR 330 million to continue to develop projects in France. What to give a good view of the problems encountered by medium-sized businesses and economies, on both sides of the Alps. It is also responsible for since 2004 by the Confindustria business movement of American and Middle Eastern investment in Italy.

What is your judgment on the Italian economy and the loss of productivity that it registered

Curiously, we read everything and its opposite on the health of the Italian economy. It must of course consider indices on a time long and month by month. However, on a decade, there is that the loss of productivity and the Italy export capabilities are irrefutable data. The trend is clear. So far, cannot say that everything is going wrong. But small and medium-sized companies that are the essence of the production are more global competition and they lack the necessary research and development and communication capabilities to their products. Financial investors should promote a reversal of trend in helping these companies to reach critical mass and to develop projects of research and development.

The Chief Economist of Morgan Stanley, Eric Chaney, believes however that a share of the loss of productivity comes from recent laws which have relaxed the regulation of work and helped to move some workers of the "black" to the legal work.

It is surely a reality, a factor to be considered, but is not what explains the fundamental trend.

Your creator of Fund of private equity activity probably gave you a vision of what business in Europe

With 21 Investimenti, our role is to identify the ingredients to create added value, companies that have potential. This can be a good management team, or a contractor to face more difficult challenges, which require planning ever more. As a private equity fund turned to industrial activities, we must determine what are the management capabilities and financial needs and help the team to define its priorities. The priority for us is to assess the company and to recognize its own characteristics. It then to helping grow the export, to conquer new markets, create new products, to consider share repurchases, and make it able to aggregate with other companies. These are the assumptions that are the basis of our reasoning. We try to be smart investors who know the industry and its needs.

Is there something particularly important in terms of management

One of the essential elements for SMEs, and that we can provide, is the learning of corporate governance. This requires leaders to be disciplined. But it must go beyond the performance of the stock options and be able to make choices in the long term. The shareholder him must also learn to behave in reference to discipline his behaviour.

Ultimately, the value of the company is the teams leading the. I have a vision of the close company of Schumpeter.

Can you talk about loss of dynamism of the "old Europe"

Europe is not yet common industrial policy. It must be that it is its internal balance. It is one of the things that determines the performance of the European Union. We are countries very civilized with historical and cultural roots exceptional, very important traditions, and we give respect to the role of the social, so that everyone has acquired privileges, large or small.

In times of great changes, companies must be flexible and fast. However, the accumulated benefits are a brake. However, Europe must find its size, between the great technological market with large research facilities of the United States, and an Asia burgeoning which invests in education and research. If we do we hurry, we risk to be suffocated. We have the means to fight, but should encourage them in this direction.

European companies have had to relocate the production of many products. Where can we go that route

This is not a trend of the market but a continuous process. Move production simply for a question of costs may seem logical, but it is a short-sighted that can turn against its author. This can undermine long-term business vision. It is true that the market sometimes requires decisions in the short term, but should have clear ideas and choices. If the quality bonus, the product may be manufactured only in Italy or France, say in Europe. But it may also delegate certain phases of the production and not others. The world is changing, and some countries have become expert for some process. The Chinese now produce quality products. Which before were in Korea and then Thailand and then to the Viet Nam... If the issue is to be the fastest to obtain costs low, this may be only temporary and solves nothing. If it instead to a market, becoming a local player, it can ensure the future. New producers are getting richer and in turn top of range, not consumers become

Do you think that Italian or French companies can still be competitive in China

If I remember correctly, the train that links Shanghai to its airport is German... Everything is matter of quality and service. This means investing in research and development, the culture of the product. For many companies, this will be the great challenge. But it may also seek to develop partnerships.

But the problem of the dimensions and the technological delay seems you not insurmountable

In the case of the Italy or the France, the problem is real. But there is capacity for innovation in processes and products. The luxury, but especially quality, especially in Italy, may be good reasons to be hopeful. We have been able to develop products, be it of the shoe, the rear window of the House... This shows that the model of the Italian SME resists sum well enough. Moreover, Chinese ask us how the "districts" of production and what is the dynamics of growth of small and medium-sized cities. Because it will have to in a moment create clusters of population outside mega...

But the Italian SMEs or French, often based in the 1950s, is now faced with a delicate phase of transition to the next generation. This made many problems to face at the same time...

If these SMEs, we see that in recent years they had to cope with the rising prices that followed the transition to the euro, while they have more flexibility that brought the devaluations. The prospects for them were black, and yet they have adapted and have are very quickly restructured. The generation of the 1950s shows thus very reactive... You can still count on it. With respect to the passage of relay, private equity funds can be a useful tool. But there are still many obstacles. The weight of the rights of succession must not become a, diverting some contractors of pass the reins, in their family or independent managers.

What are your projects for 21 Investimenti

Our first Italian Fund, Giada, is now closed and we will create a second, Giada 2, at the end of the year, with a capacity of 170-200 million euros. I have the feeling that the role of the private equity is more in addition to being an intermediary between the company and the stock market. This role will continue to evolve, because it creates a convergence between the different types of funds: real estate, asset management... Europe is not yet quite there, but it will happen.

In view of your new role in the Benetton group, how will you with 21 Investimenti

I will certainly work more! But 21 Investimenti, is like a child that I cannot abandon... However, I will be proud to see it grow and walk on two legs. The teams both in France and Italy are very competent and I will continue to be present... For the future of 21, if one considers the international expertise that we have acquired with two thirds of our operations managed from abroad in the past five years, including in the far East, I think that this market will be an interesting opening perspective.