Tamburi Investment Partners S p A : Presentation altagamma - How private equity can support luxury

How private equity can support luxury

13 October 2021

We should all feel nothing but shame for the reputation that finance has earned itself in the last few years, but if you manage to guide healthy capital from successful businesses and the assets of families that wish to invest them intelligently in companies that want to grow, you are genuinely doing one of the most beneficial jobs in the world.

@TamburiTip

Global M&A activity in 2021

During 1H2021 global M&A deals peaked in value at 2,500 bn usd vs 3,245 bn usd in the whole 2020

Quarterly trend (2018-1H2021) global M&A deals

The M&A activity has been positively

influenced by the widening of the

monetary policiesfrom central banks,

that are leading the recovery pumping

money into the economy thanks to

lower interest rate that favored the

investors' risk appetite.

In the last 12 months the growth in M&A activity - in terms of value - has been boosted by private equity

Quarterly trend (2018-1H2021) global M&A deals: Corporate vs Private Equity

deal value

(million usd)

# deals

In the last twelve

months

almost half of

the M&A deal

value involved

private equity

players.

Source: PwC, Global and Italian M&A Trends

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M&A activity in Italy in 2021

In the last 12 months the M&A activity in Italy reached 80 billion usd in deal value

Quarterly trend (2018-1H2021) Italian M&A

# deals

Investments in Italy are

strongly recovering, in the

last twelve months the M&A

activity almost doubled the

pre-Covid levels

(80 vs 45 billions in 2019).

In the last 12 months private equity dominated the M&A arena even in Italy

Quarterly trend (2018-1H2021) M&A deals in Italy: Corporate vs Private Equity

# deals

deal value

(million usd)

Almost 50 billions

USD in M&A

transactions carried

out by private equity

investorsin Italy in

the last 12 months

with a strong focus

on large deals.

Source: PwC, Global and Italian M&A Trends

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# deals

		Fashion & Luxury
	In 2020 fashion & luxury M&A deals reached 17 billion usd worldwide
Fashion & Luxury Global Deal Value & Volume (Q1'18-Q4'20)	Looking at the	latest global
		M&A transaction:
		▪ Deal value	grew to 17.4

billions euro (+19% vs 2019); ▪ Deal volume decreased to 675

(-17% vs 2019).

Less transactions with a strong focus on large deals; luxury acquisition momentum picked up with Moncler-StoneIsland deal.

In 2020 almost 20% of the M&A deal value in fashion & luxury regarded the Italian market

Fashion & Luxury Italy Deal Value & Volume (Q1'18-Q4'20)

Despite the spread of

Covid-19the Italian market

reacted with "mega" deals

- such as Permira-Golden

Gooseand Moncler-Stone

Island- totaling 3.3

billion usd in deal value

(+177% vs 2019).

Source: PwC, Global and Italian M&A Trends

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Fashion & Luxury: deal features

The M&A transactions trend showed an increase in multiples especially in 2019 and 2020

▪ During 2018-2020, in fashion & luxury the number of medium sized deals increased by ~26%, whereas small and large sized deal decreased by 5% and 12%.

▪ During 2018-2020the number of deals in fashion & luxury with a

multiple higher than 15x increased by ~50%(note: the increase in deal multiple in 2020 might be also the effect of the reduction of the economic results recorded in 2020…)

Structure of the fashion & luxury deals

Minority investments in

Fashion & Luxury still

represent a niche and

specialized segmentof the

private equity industry.

Source: Deloitte, Global Fashion & Luxury Private Equity and Investors Survey 2021

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