Penetration of alternative assets in Italy is much lower than in other European countries

ESG alternative investment funds continue to generate buzz and demand among institutional investors. The latest firm to make a splash is Italian asset manager Alternative Capital Partners.

The company focuses on alternatives and applies ESG principles to all underlying asset classes. ACP believes that its fund returns can improve thanks to an additional thrust on ESG sustainability principles. At the same time, it expects a positive impact on the environment and the real Italian economy.

Italy is relatively unexposed to alternatives

Italy presents a unique opportunity for ESG alternative investments even in the face of broader economic challenges.

“In Italy the segment of illiquid thematic alternative investments remains unexplored: the penetration rate of alternative asset classes is much lower than in other European countries,” says Emanuele Ottina, co-founder, ACP.

ACP primarily serves institutional investors, family offices, and wealth management companies. Its investors are looking for innovative alternatives that hold little correlation to traditional financial assets and generate attractive returns in a scenario of low-interest rates.

ACP launches green ESG alternative investment funds

The firm says its mantras are: “Alternative, sustainable and innovative.”

To align with those missions, its two alternative funds will invest in infrastructure and social real estate, respectively.

The infrastructure fund will focus on green energy infrastructure. Meanwhile, its real estate fund will seek opportunities in urban social infrastructure. Assets would include student housing, hostelling, smart/co-working, and shared housing.

The EU’s climate policies set up for 2030 will  require massive investments in green infrastructure to enable that green transition.

“There’s a tremendous opportunity to invest domestically in greenfield energy infrastructure and energy efficiency projects of small to medium size,” said Ottina.