Italian Small Cap Financial Advisory - Team - Methorios Capital

Local Player Analysis
‣ Noted trends in the activity of local operators in the advisory market are:
• A significant number are gearing their services towards supporting small and medium companies in the renewable
energy sector for which they see as having performed well throughout the global downturn. This is a trend that many
expect to continue in the years ahead as energy security and environmental concerns continue to be a pressing issues for
which European governments have been implementing legislation and incentives to promote investment.
• As of recent a significant portion of completed mandates have been related to debt restructuring services and sourcing
new credit lines. This has been a solid source of income for advisory firms for that has been driven by the serious
contraction in the availability of debt.
• With respect to IPO activity, ii the levell of new listingsi for 2010 on Borsa Italiana has remained significantly ifi down on
2007, completing 10 listings on all equity markets of Borsa Italiana. Small cap listings accounted in 2009 and 2010
accounted for 83% IPO’s in respect to transaction numbers, that continue to drive listing activity on Borsa Italiana. Mid
and larger sized companies on the other hand remain still hesitant to go ahead with any listing plans, many preferring to
remain on sidelines until market conditions improve (e.g. Ansaldo Energia and Banca Fideuram) or choosing to list on
markets where there is stronger investment activity (e.g. Prada’s potential listing in Hong Kong).
• Membership to various International and European associations appears to be a common theme amongst the local
Italian operators. Many view this as a vital way to achieve greater exposure to markets abroad and the potential to benefit
from cross-border transactions with other associated members. Firms that have joined/established international
partnerships are K Finance (Clairfield Partners), Cross Border (Global M&A), Baldi & Partners (AA International),
Caretti & Associati (Mid Capital), Arietti & Partners (M&A International) and Methorios Capital (partnerships with
Amber Capital, Santander and Goldman Sachs).
• Newer entrants into the market have shown exceptional growth (Klecha & Co and Cassiopea Partners) whilst some of
the moreolder established firms have experienced severe declines in revenues from 2008 to2009 (Eidos Partners,
EnVent and Caretti).
• The new entrants to the market in many ways follow the new global trend for young entrepreneurs, who have gained
their experience at big firms, to go off on their own and forming boutique advisory companies. This is in contrast to the
older generation of financial service professionals who tend these days to jump between consultancy roles with various
larger firms.
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