Report: Libyan sovereign fund, Mediobanca to form Italy-focused fund

The Italian bank and the Libyan Investment Authority will reportedly establish a private equity fund of up to $500m to invest in distressed Italian companies.

The Libyan Investment Authority and Italian bank Mediobanca have agreed “in principle” to form a joint fund to invest in Italian companies.

Libya’s planning minister and chairman of the Investment Authority, Abdulhafid Zlitn, told Reuters that though nothing official had been signed, the two parties have agreed to establish a fund whose size will be between $250 million and $500 million. It will target distressed Italian companies in the pharmaceutical, information technology and real estate sectors.

Mediobanca declined to comment.