The company – Who is ConfiNet?
Established in 2007, ConfiNet began life as a niche software company when two experienced finance professionals joined forces after several decades working in the banking sector. The company founders were from two local families in Vincenza, Northern Italy. Globally, Italy is the most complex and advanced credit guarantee market and ConfiNet is the leader in supporting banks in the confidi guarantee sector. Its software solutions are used by banking institutions across Italy to manage credit guarantee-backed financing reporting either for internal use or to other stakeholders utilising the banks’ own data stacks.
The need for investment – scale and numbers for the future
As a small, but highly successful business, ConfiNet was aware that no matter how established it was in the region, potential regulatory or other market changes might mean the company was perceived as ‘too small’ at some time in the future.
Massimo Giordano, Vice President of ConfiNet: “We knew we were strong, and our size had always been irrelevant – as long as the banking landscape stayed the same. We saw this as a weak point in our future growth plans. In fact, we had already been approached by a few bigger companies looking to buy or merge with us, which would have given us the scale and numbers we might need in the future.”
Discovering Upliift – a different way forward
Selling was never going to be an easy decision for a family-owned business and the earlier offers to merge or buy the company just didn’t feel right. Then, permanent equity provider Upliift was introduced to the ConfiNet leadership team by Andrea Gelfi, CEO at Galileo Network, a market leader in the private guarantee market in Italy. Galileo had recently been acquired by Upliift and Andrea Gelfi saw similar potential for its permanent investor model to help secure ConfiNet’s future.
Massimo Giordano, Vice President of ConfiNet: “We hadn’t come across Upliift before but trusted Andrea when he told us about the opportunity. We’d been looking for a partner and the idea of permanent equity appealed to us instead of going down the venture capital or private equity route. That’s because it didn’t feel like Upliift was just speculating, rather they were investing in our future.”
This long-term perspective was important to ConfiNet and the decision to accept Upliift’s offer was a quick and easy one. It was also helped by the instant rapport between the companies’ respective leadership. The quick decision was followed by an equally quick and straightforward onboarding of ConfiNet into the Upliift portfolio family. This was due to Upliift’s readily available capital, experienced Italian team and proven onboarding process.
Post acquisition – what’s changed for ConfiNet?
New processes and ways of reporting are just two aspects that Massimo Giordano comments on when asked to describe how things have changed.
Massimo Giordano, Vice President of ConfiNet: “While the most senior team members are still actively involved with the company, we are learning a different way of doing certain things. Planning and budgeting have to be more formal than previously – we can’t keep great ideas in our heads; we need to put them down on paper!”
There’s also an exciting new collaboration under way between ConfiNet and fellow Upliift portfolio company Galileo Networks. Together, they’re creating a new technology platform offering great improvements to banks and confidis looking to digitalize their credit guarantee activities. This platform will create a new way of sharing information between the two parties, in order to save time and money, therefore minimizing the risk of losing a guarantee.
The future
With Upliift’s investment focused on long-term growth opportunities and the tie up with Galileo Networks, ConfiNet knows it is ready for any future changes to Italy’s banking industry landscape.
“We feel confident about the future now and excited about the next chapter for our business,” claims Massimo Giordano, Vice President of ConfiNet.
