Massimo Malvestio is currently Portfolio Manager and Chairman of the Investment Committee of Praude Asset Management Ltd., an asset management company he founded in 2009. He also worked full time as a lawyer before entering the world of finance. Interviewed by “Nordest Economia” newspaper, he talked about the inclination of companies in Northeast Italy to open up their capital to third parties.
Massimo Malvestio speaks to the Italian newspaper “Nordest Economia”
Companies in Italy are increasingly interested in opening up their capital to the market. This is particularly true for the northern part of the country. This was the message from Founder of Praude Asset Management Ltd. Massimo Malvestio in an interview with “Nordest Economia”, which was published on January 20, 2022. The expert in value investing and asset management analyzed the role of capital markets in general and that of the local financial system in particular. According to him, private equity investments have grown recently because “the multiples offered by the markets to small companies have grown” and “this has prompted many companies to go public”. Another reason for this boost can be found in the regulatory system, with “several measures facilitating the listing of smaller companies and bringing assets closer to risk capital”. Massimo Malvestio stressed that this change can consolidate and develop further if the legislative framework remains favorable: “Transparency is now in the DNA of the vast majority of companies”, he said, pointing out that “the rules of the stock market are not perceived as a trauma, unlike what happened in the past”. Furthermore, in this context, Italy’s National Recovery and Resilience Plan (PNRR) can represent a favorable growth opportunity for both Northeast Italy and the whole country.
Massimo Malvestio on how to boost the production system: focus on competence and talented people
In his interview, Massimo Malvestio also focused on how local banks have gradually disappeared in Triveneto. According to the Founder of Praude Asset Management Ltd., this area “no longer exists from a banking point of view, apart from Cassa Centrale in Trento and apart from the province of Bolzano”, he explained. “Savings banks, cooperative banks and cooperative credit banks – even those existing through parent companies – have been deprived of their typical features by legislation and pushed towards a joint-stock company model”, he added in the interview, while emphasizing how important is to have an efficient local financial system that is able to meet the needs of companies. Massimo Malvestio said that it is “impressive” how the Triveneto area has undergone this “without proposing any alternative”. What to do in order to overcome this situation? As said before, Italy’s National Recovery and Resilience Plan can be a great growth opportunity for the country. However, along with it, we also need to focus on competence and leverage talented people. According to the expert, the Triveneto area has its cards to play. “We must avoid brain drain and attract new talents”, he pointed out: the area has “not only the landscape, but also the quality of our lifestyle, a world-class healthcare system, universities and an extraordinary business system”, he said in conclusion.