28.07.2025 – Articles
At the British Emerging Manager Institute Summit 2025, we caught up with Federico Canciani, founder of GTO Partners, to explore the realities of launching and scaling a private equity firm in today’s shifting environment.
GTO, which focuses on buyouts in the software and tech-enabled services space, was founded five years ago after Federico’s successful 20+ year career at large institutions and his growing personal interest in backing tech entrepreneurs.
The conversation charts GTO’s evolution from launch through recent macro shocks, and how those challenges helped shape a focused, resilient investment strategy.
Federico highlights the operational complexities of running a new manager, the hard-earned lessons on team dynamics and alignment, and why building the right culture is just as important as getting the deal right.
He also provides a nuanced view of the emerging manager landscape, including how allocators’ mindsets are shifting, why Europe is enjoying a moment of renewed interest, and what it takes to stand out as a smaller manager.
Federico launched GTO Partners after years of backing software businesses personally and watching “larger managers grow out of the lower mid-market.” GTO’s strategy is to reclaim that space.
“The idea behind GTO is to position ourselves in the lower mid-market; exactly where the larger managers started their journey many years ago.”
He credits much of GTO’s success to its diverse team and strong internal cohesion, stressing that culture isn’t just a nice-to-have, it’s foundational.
“Creating a team environment, a culture, a type of trust and reliance on each other, these are fundamental. That’s what allows us to find better answers.”
From the pandemic to macro-political shocks, the firm launched in an era of compounding crises, but that’s exactly what sharpened its edge.
“These challenges forced us to stay focused. Today, we have portfolio companies at the right entry multiples and no issues in the portfolio. Not everyone can say that.”
Federico sees a growing openness among LPs to back smaller managers, particularly in Europe, where under-allocation is now being reassessed.
“We’re seeing increased interest in Europe from LPs across the US, Asia and the continent. There’s a realisation they’ve under-allocated to Europe and that’s starting to change.”
“Support is never enough but the outlook is improving. Smaller managers can generate extra alpha. Now the ball is in our court to prove it.”
His advice to would-be emerging managers is clear: plan for it to take three times longer than you think, and align deeply with your founding team on goals, values, and timelines.
“Clarity of mind between the founders is paramount. The biggest risk is misalignment on timing, resourcing, expectations. Get that right and you have a shot.”
“Every issue on the portfolio side can be solved if there is cohesion in the GP team.”