Fimit's merger with First Atlantic is expected to unleash fresh consolidation in the Italian fund management industry which has seen an explosion in the number of players in the past 10 years.
The planned merger signals the sector's desire to boost growth and efficiency through global scale, said Olaf Schmidt, head of European real estate at DLA Piper. 'The operation will generate Italy’s first fund management player of a European size which will have an enormous power to attract institutional equity in the market,' Schmidt said.
The tie-up will create Italy's largest real estate asset management group, with over EUR 8 bn of assets and 19 funds under management. It coincides with an attempt by the industry to restructure amid new regulations expected to take effect from next year.
Under these rules, funds must be owned by a number of investors and managed by an independent manager. 'The recent amendments to the Italian investment fund law are a clear sign by the market regulator that the industry needs to go towards with fewer but stronger players,' Schmidt said.
The story appears in the December 2010 edition of PropertyEU Magazine. Click on the link below to subscribe | 
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