Temasek acquires 9% stake in Italian equity investor FSI; additional capital set for future funds

[SINGAPORE] Temasek acquired a 9 per cent stake in Italian growth equity investor FSI’s management company, with additional capital set to be committed to future FSI funds, the Singapore investment firm said on Monday (Sep 28).

FSI has about five billion euros (US$5.7 billion) of assets under management.

Temasek had invested in the FSI I fund previously, which closed in 2019, and has made eight exits across its 11 portfolio companies for its investors.

The Singapore firm also invested in FSI II, which closed in 2024 as Europe’s largest fund dedicated to a single country, Italy.

Additionally, Temasek is also an investor in FSI’s new Scale-up Capital Solutions fund, launched in 2026 with a specific focus on Italian high-growth small and medium-sized enterprises.

The Singapore investment management company has invested in Italy for over ten years. It holds direct and indirect interests in companies including Ermenegildo Zegna Group, Golden Goose and Moncler.

As such, the partnership between Temasek and FSI will “deepen Temasek’s exposure to (Italy’s) mid-market” at this point in time, where companies require “substantial equity capital”, noted FSI.

FSI defines Italy’s mid-market as businesses with revenues of between 70 million and 200 million euros, and Ebitda (earnings before interest, taxes, depreciation and amortisation) of 10 million to 30 million euros. They are typically family owned, export-oriented niche leaders.

Italy has about 10,000 such companies, of which only around 10 per cent have brought in an institutional equity investor or listed on a stock exchange.

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Nagi Hamiyeh, president of Temasek Global Investments, said: “Italy is an integral part of Temasek’s Europe strategy....We engage companies’ boards and management on strategy and governance, while leaving day-to-day operations to them, and can participate directly as they scale.”