Ferrari Head "Charmed" by New Private Equity Fund

December 3, 2002 ( - The chairman and chief executive officer of Ferrari SpA is racing into the private equity markets with an eye toward taking a position in consumer goods companies with strong brands and loyal customers.

Luca Cordero di Montezemolo said he is launching the Charme private equity fund, which will cross the starting line with a war chest of  €110 mln, according to a Dow Jones news report.

Dow Jones said the other founding members include:

  • Deutsche Bank AG
  • Unicredito Italiano SpA
  • Monte dei Paschi di Siena SpA
  • Tod’s SpA founder Diego della Valle.

“This initiative represents the first phase of what will be a long-term entrepreneurial project that will be flexible and dynamic” said Montezemolo in a statement, adding that the fund was independent of his role at Ferrari and Maserati.

The fund, whose assets the founders see reaching some €150 mln within the coming year, will look for investment in small companies within the consumer goods and media-entertainment sectors.

Typical target companies will have strong brands as well as primary customers “who give priority to quality and the social status of the goods that they buy,” Charme said in a statement. Charme said its investments will not necessarily be restricted to the luxury goods sector, but will be companies that show a high level of potential in terms of branding and strategic marketing, Dow Jones reported.