The financial sector is the smallest business within the CIR group. Over the past few years, CIR has set up the company Jupiter Finance and other initiatives.
Jupiter Finance
Jupiter Finance, founded in 2005, is a financial company specializing in the acquisition and management of non performing loans (NPL) and trade receivables originated by banks, financial institutions, commercial companies and public administrations. Jupiter Finance has become a leading player in Italy, acquiring distressed debt from dozens of financial institutions.
At December 31 2009 the gross book value of the loans under management amounted to approximately 2.2 billion euro. Approximately 60% of the portfolio was acquired through securitization vehicles, while the remaining 40% is managed on behalf of other investors.
CIR Ventures
CIR Ventures is the venture capital fund of the group. At the end of 2009 it had investments in six companies, of which five are in the United States and one in Israel. These companies all operate in the sector of information and communications technology. The total fair value of these investments as of December 31, 2009 was 14.5 million dollars.
Private equity funds
The CIR group holds a diversified portfolio of funds and minority private equity holdings, the fair value of which determined on the basis of the NAV provided by the various funds was 62.1 million euros at December 31 2009.
Hedge funds
Medinvest has been a fund of hedge funds set up in 1994 to invest certain proportion of CIR group’s excess liquidity with the aim of obtaining high returns, while reducing volatility and diversifying risk.
During 2008 CIR established a plan of divestment from Medinvest to meet the objective of rebalancing the portfolio in order to optimize the financial structure of the group.
In November 2009, the shares of hedge funds held by Medinvest were concentrated in the company CIR International, as part of a process of simplifying international assets at holding level.
As of March 31 2010 the investment made by CIR group in shares of hedge funds amounted to 88.4 million euro. In the first three months of 2010 the performance of this investment was positive (+1.3%).
Food Concepts Holding
Food Concepts Holding is the new start-up of the CIR Group operating in the restaurant sector. The company aims to create a new kind of restaurant inspired by Italian and Mediterranean cuisine in the fast casual segment. The first Food Concepts restaurant (LaBaracca) started operating in June 2010 in Munich (Germany). The company is led by Mark Korzilius and chaired by Claudio Stabon.
