Lmdv Capital, profit of 60 million thanks to the change in accounting criteria

Milan – Lmdv Capital, the family office of Leonardo Maria Del Vecchio, approved the draft budget for the 2025 financial year on 3 November which "closes with a net profit of 59.9 million euros, more than doubled compared to the 25.6 million of 2024. The Gross Asset Value rises to 690.5 million and the net assets (NAV) to 328.6 million".

This result, as explained in the company press release, was obtained by changing the accounting principles, i.e. moving from the Italian ones to the international ones. Being qualified as an investment entity for the purposes of IFRS 10, Lmdv Capital also does not have the obligation to draw up a consolidated financial statement, therefore to provide a snapshot of the state of health of the group as a whole.

The second consequence of this accounting change is that "the shareholdings are no longer recorded at the purchase price but at their current value (fair value), estimated for unlisted companies with the support of a leading consultancy firm as an independent expert, and the growth in value of the portfolio contributes to the result for the year. The financial statements are subject to legal audit by BDO Italia".

Therefore, the budget result is the result of the revaluations that affected most of the 57 companies in which Lmdv invested from 2022 onwards, distributed across seven sectors (Hospitality, Real Estate, Tech & Applied Innovation, Media & Entertainment, Investment Funds, Beauty & Wellness and Fashion & Lifestyle).

“In 2025 the portfolio generated a result of 100.4 million euros, compared to 41.5 million in 2024. The growth in value of the investments contributed 83.8 million, the portfolio of securities and funds contributed 14.1 million and the dividends and financial income contributed 2.5 million”, is written in the press release.

To arrive at the net profit of 59.9 million it is then necessary to deduct "operating costs and amortization (19.1 million, increasing due to the strengthening of the structure), financial charges (18.1 million, linked to bank debt) and taxes (3.3 million, entirely deferred)".

The board of directors of Lmdv Capital then proposed to allocate the entire profit to the reserve, without distributions to the sole shareholder, namely Leonardo Maria Del Vecchio.

From a financial point of view, in 2025 an important contribution came from the Crédit Agricole-Indosuez group through a loan of 350 million euros, used for 335 million as of 31 December 2025, with expiration in July 2028, extendable until 2030 and repayment in a single solution. “The loan made it possible to fully repay previously existing bank loans, providing the Company with a medium-term financial structure consistent with the investment horizon,” explains the company.