Go ahead with the alternative PIRs. The novelty introduced by the relaunch decree to try to convey liquidity to small and medium-sized enterprises in difficulty due to the coronavirus emergency is appreciated by the market and managers who are starting to get busy, preparing tools capable of adapting to the new reality. We recall that according to MEF estimates, in addition to giving new impetus to the traditional individual savings plans, the alternative PIRs should collect around 2020 billion euros in 4,5 and reach 2024 billion in 9.
Among the first asset management groups to enter the alternative PIR market is Kairos who launched a new product. It is called KAIS Renaissance ELTIF and "it is the first ELTIF - European Long Term Investment Fund - of Kairos, focused on European SMEs, mainly Italian and one of the first Alternative PIRs on the market", explains the company in a note.
Before going into the details of the new tool created by Kairos, let's recap the main characteristics of alternative PIRs: they are products dedicated to a private or affluent clientele, which (like traditional plans) guarantee a tax exemption on financial returns on condition that the saver maintains the investment for at least five years. The maximum investment threshold is 150 euros a year, 1,5 million in total. According to the provisions of the relaunch decree, 70% of the total value must be invested in instruments issued by companies with permanent establishments in Italy other than those included in the Ftse Mib and Ftse Italia Mid Cap indices, in loans from the same companies and in loans to them disbursed.
The product launched by Kairos can already be subscribed to by investors and will be available until 31 March 2021. "The philosophy of the project - underlines the group - revolves around the idea of building a bridge between finance and business capable of fueling a real virtuous circle”.
Kairos proposes a closed-end alternative investment fund which invests in small and medium-sized companies, unlisted or listed with a capitalization of less than 500 million euros. As regards the portion of the portfolio intended for unlisted companies (maximum limit 25%), the investment will in particular concern transactions attributable to convertible bonds or bonds with warrants, Club Deals, Pre-IPOs and private equity, compatibly with the duration of the fund scheduled for 6 years, extendable up to 8.
The fund will be managed by Massimo Trabattoni, head of Italian Equity, and Rocco Bove, number one of Fixed Income, sharing all the preparatory phases for the construction of the portfolio.
Fabrizio Rindi, CEO of the Kairos group, said: "This new product represents on the one hand a vehicle for contributing to the recovery of Italy and on the other an opportunity for our investors to enhance their assets in the medium-long term, with the addition interesting tax breaks: in fact, we managed to adapt the ELTIF Regulation to the changes introduced by the Relaunch Decree for Alternative PIRs during the course of the work”.
