Alessandro Binello: The Future of Luxury Lies in AI, Lifestyle and Made in Italy
Alessandro Binello outlines Quadrivio Group’s core strategy, focusing on main macro-trends.
Founded over 25 years ago, the group is now a leading European private equity firm targeting high growth sectors: Lifestyle, Made in Italy, Artificial Intelligence and Longevity.
International expansion has been a decisive turning point for the company. Quadrivio currently employs over 70 professionals across major global financial hubs, including Milan, London, Paris, Luxembourg, New York, Hong Kong and Monaco - a location that plays a central strategic role in their global development.
The firm is actively accelerating investments in affordable luxury fashion brands with strong identities. Simultaneously, Quadrivio is heavily investing heavily in the Silver Economy to support aging populations, and has partnered with Microsoft to launch an AI-dedicated fund for SMEs. Looking ahead, the group targets €2 billion in the lifestyle, fashion and beauty sectors, aiming to expand retail and e-commerce through a seamless blend of technology and human expertise.
AC • After more than 25 years in finance, what drives your entrepreneurial vision today?
AB • I founded Quadrivio Group over 25 years ago, but my vision has remained unchanged since then: investing in leaders and creating value, for our portfolio companies and stakeholders. As a group - today one of Europe’s main private equity operators - we have adopted a vertical strategy also based on specialization. We identify the main global macro-trends and concentrate our investments there. In particular, we operate in the lifestyle and Made in Italy industries, but also in those with high innovation content, such as artificial intelligence and digitalization, as well as in areas connected to demographic trends, such as longevity and healthcare. This approach enables us to identify the most interesting opportunities in the sectors with the most growth potential, which are also those set to reshape the balance in the economy in the coming years.
AC • You have built Quadrivio Group into an international player: what was the decisive turning point?
AB • The real turning point for us coincided with the group’s international expansion. Today Quadrivio Group can rely on over 70 professionals and is present in seven countries. It has offices in the main international finance hubs: Milan, London, Paris, Monaco, Luxembourg, New York, Los Angeles and Hong Kong. We have dedicated teams with very specific expertise for each of our funds. This enables us to have greater awareness in the sectors we operate in, besides a privileged perspective on what is happening and what will happen. These aspects allow us to better understand the markets and to identify the best investment opportunities ahead of other players, securing a significant competitive edge for ourselves.
AC • Which sectors are you focusing on today to capture the key future macro-trends?
AB • As private equity operators, we use themed funds to concentrate on the industries that today offer the greatest growth prospects. First and foremost, we focus on lifestyle, because this segment, with its many facets, is very attractive today. This stands alongside the Made in Italy sector: this is still extremely strong worldwide and uses the leverage of intangible values such as style, heritage and positioning, which enable us to achieve higher profit margins and bring us greater resilience. The affordable luxury segment is also very important for us, and this allows us to reach consumers who are more aware and pricing-conscious. The fashion sector is still of primary importance for us, and here we have chosen to accelerate, at a time when many sector players are preferring to slow down, as we are confident that the current market context is not a limitation but an opportunity to strengthen brand positioning in many cases. We favour firms with a recognizable identity and a value proposition in line with today’s consumers, who are ever more aware of product quality. We are especially interested in businesses aligned with the major demographic, technological and consumer trends, such as the Silver Economy and longevity. Increasingly ageing populations is generating a growing and stable demand for services connected with healthcare, wellness, prevention and quality of life. We meet these needs through investments in companies active in these segments. We also focus on artificial intelligence. We see this as a vital technological lever that enables us to increase efficiency, improve decision-making processes and create value in companies in a scalable manner. In partnership with Microsoft, we have set up a fund that invests in AI and implements it within SMEs.
AC • What is your next goal?
AB • Our next objective is to further consolidate Quadrivio’s growth, guiding the group into a new phase of international development and strengthening its leadership in key sectors. In particular, we are aiming to reach the €2 billion mark in the lifestyle, fashion and beauty sector. We will be focusing on brands in the affordable luxury segment with a pronounced identity and high aspirational worth, ones capable of meeting the needs of increasingly demanding and value-conscious consumers. We will be investing ever more in retail stores. We have already built a very strong network with our various brands, with over 300 points of sale, and this allows us to interact with consumers quickly and directly. We will also be strengthening the e-commerce channel. Many new developments are on the horizon. Sessùn has just opened its first store in Milan, and we are already working on premises in Rome and Florence. Twinset is at the network consolidation phase. Regarding the Silver Economy Fund, we are currently building a network of diagnostics centres generating more than €100 million in turnover. Through an M&A strategy regards the AI fund, we are working to create a key player in the system integration and AI-driven digital solutions sector.
AC • How do you pair your Made in Italy strategy with technological innovation?
AB • Made in Italy products have always been strong in creativity and quality. Today, technology can be used to enhance and support these aspects. I’m referring to digitalization, e-commerce and data analytics to better understand consumers. Technology impacts competitiveness and the capacity to operate on a large scale quickly, flexibly and efficiently. We are among the first to have explored artificial intelligence applied across the various business and production processes. Nonetheless, the products themselves and the strong experiential content remain key factors for a brand’s success.
AC • What is the most important lesson you have learnt after more than 100 investment deals?
AB • There have been many lessons, but one in particular is that in private equity you have to stay close to the market and anticipate trends so as to act first. Timing is vital: you need to get there before everybody else. Another important factor is not leaving anything to chance: you have to manage all the various phases carefully and meticulously, from origination and due diligence through to active management and then exit. For us it is crucial to work alongside companies and enterprisers to carry forward a shared and sustainable growth and development project. One more key aspect is the central role of human capital, not only at the management level - with well-structured, expert and motivated teams - but also as a network. Private equity is not relegated to the mere role of investor, but is a strategic partner bringing capital, expertise, vision and governance.
AC • How is the private equity world changing with the advent of artificial intelligence?
AB • Artificial intelligence has had a disruptive effect on our industry too. It is altering the way we identify the deals to be made, and how data is collected and analysed, as well as the approach to risk. AI stands as a support tool for investment teams throughout the investment process, also assisting them in risk assessment and strategic decision-making. From the due diligence to the actual investment itself, AI allows us to cut the timelines: it enables us to process large amounts of data extremely quickly, with far-reaching impact in terms of efficiency. Nevertheless, these technologies alone are not enough: creating value also requires experience and the human ability to interpret the data available. I believe that the future will go in this direction - a hybrid model.
AC • What does Monaco mean for you today, as an international business and investment hub?
AB • We have chosen to open in Monaco because it is a highly strategic hub for us. It is in fact an important centre for relationship-building and developing business in an international context. The opening of this new office, which comes shortly after inauguration of our Paris branch, confirms and reinforces our international expansion strategy. In an increasingly global world, having a robust presence in prime locations such as Monaco is essential.