Hat Technology Fund 4

Hat Technology Fund 4 is a private equity fund managed by HAT SGR, focusing on technology and innovation investments in small and medium-sized Italian companies. The fund primarily targets companies with revenues between €10 million and €100 million, emphasizing those with significant technological content or high levels of innovation in their processes. The investment strategy is centered on a 'buy and build' approach, aiming to strengthen the competitiveness of the Italian industrial system by aggregating companies in the ICT sector and those investing in innovation, including manufacturing companies dedicated to internationalization and digitization (Industry 4.0).

The fund's investment policy involves acquiring majority stakes in companies to serve as platforms for further aggregation, fostering an industrial approach with a medium-term investment horizon. This strategy includes facilitating generational change processes, implementing advanced governance models, and adopting the latest management and manufacturing systems. The fund has a total commitment of €110.2 million and a term of 10 years, with the first closing on October 1, 2017.

As of November 2023, Hat Technology Fund 4 has successfully exited two investments: Advice Group, achieving an internal rate of return (IRR) exceeding 20% and nearly doubling the invested capital, and Burke & Burke, realizing an IRR of 55% and a 2.5x return on invested capital. The fund's portfolio includes companies such as Huma Therapeutics, Luisa Via Roma, Marval, Platum, Primat, and Safety21, reflecting its diverse focus on sectors like digital health, e-commerce, mechatronics, e-mobility, automotive technology solutions, and smart mobility software.

HAT SGR, the managing entity of Hat Technology Fund 4, is an independent asset management company active since 2007, specializing in private equity funds focused on the Italian technology market and the TMT (Technology, Media & Telecommunications) sectors. With assets under management totaling approximately €600 million, HAT SGR has achieved a unique positioning in the Italian market, emphasizing innovation and technology, risk mitigation, and obtaining returns higher than the European peers' average, with returns approximately 3x times the invested capital. The company has been nominated six times for the 'Dematté Award – Private Equity of the Year' and has won three times.

HAT SGR is a signatory of the United Nations Principles for Responsible Investment (UN PRI) since 2019, demonstrating its commitment to responsible and sustainable investment practices. The fund's investment approach aligns with the UN PRI's principles, focusing on environmental, social, and governance (ESG) aspects to promote sustainable development and positive societal impact.

In March 2024, HAT SGR acquired a 65% stake in Texor, an Italian system integrator specializing in high-criticality network infrastructures, marking the final investment of Hat Technology Fund 4. This acquisition concluded the fund's investment period and initiated a new phase of development with the launch of Hat Technology Fund 5, a €200 million fund aimed at continuing the support and growth of Italian technology companies.

Overall, Hat Technology Fund 4 exemplifies HAT SGR's strategic focus on fostering innovation and technological advancement within Italy's industrial sector, leveraging a disciplined investment approach to enhance the global competitiveness of its portfolio companies.