In his speech, Santini – mainly in charge of investments in water services, renewable energy and waste-to-energy at F2i – summarised some key elements for transactions that require agreements with local bodies, based on F2i experience.
Santini particularly focused on three abilities he believes to be essential: creating consent at local level, due diligence and governance skills.
The first element is the ability to deal with “multi-utilities, North Italian municipalities as well as southern municipalities and regions,” building constructive relationships with the local powers. The second element requires managerial skills and sensitivity in the due diligence process which, as Santini mentioned, companies are often unprepared to. The third and last element addressed by F2i’s Senior Partner focused on governance, both of the target as well as of the partner company in the transaction. In fact, as Santini highlighted, infrastructure funds don't often acquire majority shares. However, “the partner organisational chart is not exhaustive. If we want to be polite, we can say there is a shadow cabinet that needs to be fully understood […] In order to understand this, much patience is necessary and one should be prepared for such shadow cabinet to also change in time… It is therefore a dynamic process” continued Santini.
The full transcript of F2i Senior Partner Corrado Santini's speech is available at:
http://corradosantinif2i.wordpress.com/2014/11/04/corrado-santini-speaks-at-utilities-il-piccolo-non-e-piu-principe/
