Patient Capital for Industrial Growth: Inside Aurora Growth Capital’s Investment Approach

Aurora Growth Capital, formerly known as NB Aurora, has built a reputation for offering patient capital to Italian SMEs, taking both majority and active minority stakes with an unusually long-term perspective. This flexible, partnership-first approach allows the firm to foster industrial development without the rigid constraints of traditional private equity models.

“We believe successful partnerships with entrepreneurs and management teams require flexibility in terms of holding period,” says Patrizia Micucci, founder and senior partner of Aurora. “Our fund is structured without the usual investment and divestment deadlines, allowing us to focus on creating long-term value.”

A Hands-On, Industrial Approach

Aurora Growth Capital’s value creation model is rooted in deep operational engagement. Its investment professionals work closely with C-level leaders at portfolio companies, helping to craft and execute both organic and inorganic growth strategies. These include M&A roadmaps and targeted operational improvements tailored to each company’s industrial footprint.

“We take an industrial approach,” Micucci explains. “That means being actively involved in defining and executing value creation initiatives alongside management.”

What Aurora Looks For

When evaluating investment opportunities, Aurora seeks niche-market leaders with annual turnover between €30mn and €300mn. A strong export orientation, robust financial fundamentals, and a clear path to growth are essential. But above all, Aurora prioritises high-quality leadership.

“Excellent management teams are our most important criterion,” the firm notes. “We partner with entrepreneurs who know their businesses and markets inside out.”

Supporting Italy’s Family Businesses

Italy’s mid-market segment is rich with family-run enterprises. Aurora Growth Capital has made it a hallmark to work collaboratively with founders, respecting their legacy while introducing modern governance and strategic improvements.

“We don’t seek to replace founders. Our model is based on partnership,” says Patrizia Micucci. “We preserve the founder’s vision while enhancing company culture and operational effectiveness.”

Exit Flexibility, Value Focus

Unlike traditional private equity funds, Aurora is not bound by predetermined exit timelines. The firm remains invested as long as there is potential for value creation, and it considers a variety of exit routes with one objective: maximising investor returns.

“We’re flexible,” says Micucci. “So far, we’ve delivered a 2.0x return on invested capital across 19 exits with an average holding period of 4.5 years. We exit when it makes sense, not because a clock is ticking.”

Risk Management Through Diversification

Aurora manages risk through diversification across sectors, business models, and transaction sizes. This strategic spread ensures that no single exposure threatens the integrity of the overall portfolio.

“Our portfolio is well balanced across different end-markets,” Aurora notes. “That diversification is key to weathering economic cycles.”

Firmly Rooted in Italy—For Now

While global private equity players often chase cross-border expansion, Aurora remains firmly focused on Italy’s vibrant SME sector. With its portfolio companies showing strong export orientation, the firm believes its current strategy offers ample opportunity.

“At this stage, we remain committed to excellent Italian SMEs,” says Patrizia Micucci. “The market is full of high-potential BtB businesses with international reach.”

ESG as a Driver of Competitiveness

Environmental, Social, and Governance (ESG) factors are fully integrated into Aurora’s investment and portfolio management processes. The firm sees ESG not as a compliance exercise, but as a competitive advantage.

“ESG is a value-creation lever,” Aurora affirms. “Embedding ESG best practices enhances our companies’ competitiveness across supply chains where these factors are increasingly vital.”

A Positive Impact on Local Economies

Aurora’s expansion capital model is not just about financial returns—it’s about real economic impact. By fuelling growth in industrial companies, Aurora’s investments contribute to job creation and regional development.

“Our investments support the real economy,” the firm explains. “Growing our portfolio companies means creating new jobs and stimulating local ecosystems.”

Mid-Market Outlook: Challenges and Opportunities

Looking ahead, Aurora sees enduring promise in the mid- and lower mid-market. While many of these businesses are not yet suited for traditional buyouts, they offer fertile ground for institutional investors willing to support flexible, partnership-led growth.

“This segment remains one of the most attractive and dynamic in Europe,” says the firm. “We hope more institutional investors will recognise the potential here and support strategies that are tailored to SME realities.”

With its patient capital philosophy, operational focus, and respect for entrepreneurial legacy, Aurora Growth Capital stands out as a thoughtful and reliable partner for Italy’s growth-oriented companies. As Europe’s investment landscape continues to evolve, its unique model is well positioned for sustainable impact.