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NUO
NUO was formed in 2016 in Milan by Tommaso Paoli and Stephen Cheng, the grandson of Hong Kong shipping magnate Sir Yue-Kong Pao. The firm operates as an...
NUO
NUO was formed in 2016 in Milan by Tommaso Paoli and Stephen Cheng, the grandson of Hong Kong shipping magnate Sir Yue-Kong Pao. The firm operates as an investment holding company funded by a concentrated group of multi-generational entrepreneurial families, including Exor N.V., the Agnelli family holding company, which became a 50% joint-venture partner in 2021, and members of the Guerrand family, heirs to the Hermès fortune. This capital base gives NUO a permanent, patient mandate. The firm targets mid-sized Italian companies in the consumer goods sector, acquiring minority and majority stakes through proprietary, bilateral negotiations. It has deployed €500 million across 15 companies and reports a net asset value at 2x cost of capital and a 25% internal rate of return. Portfolio positions include Venchi (chocolate), Ludovico Martelli (owner of the Proraso and Marvis grooming brands), Montura (outdoor apparel), Andriani (maker of Felicia gluten-free pasta), and Bialetti (the iconic moka coffee maker). NUO drives international expansion, particularly into China and the United States, and has opened two operating offices in the Far East to support portfolio companies entering Asian markets. NUO fields 11 investment professionals and three sector-specific operating partners, supported by six business development staff and a network of 15 external sector specialists. In June 2025, NUO took an active role in the restructuring of Bialetti, aiming to expand the Moka brand in China, the United States, Germany, and France. The firm has executed five exits at a blended 2.4x cost of capital. Related vehicles include the YK Pao Education Foundation, and Stephen Cheng serves on the boards of The Ink Society and Artists Space. NUO’s structural differentiator is its permanent-capital model funded by a closed consortium of dynastic families rather than third-party limited partners. This eliminates the pressure for discrete fund-life exits and allows a buy-and-build approach oriented around generational transfers of Italian family businesses, with an explicit focus on preserving brand identity while injecting operational discipline and Asian distribution access.
General information
Firm type
Corporate Investor
Year founded
2016
AUM
€500 million invested capital (per firm website)
Location
Region
Europe
Country
Italy
City
Milan
Corporate office
Milan, Italy
Principals
Tommaso Paoli
Founder and CEO
Stephen Cheng
Founder and Chairman
Sector focus
Frequently asked questions
Who runs investment decisions at NUO?
Founder and CEO Tommaso Paoli leads investment decisions, with Founder and Chairman Stephen Cheng providing strategic oversight. The firm operates with 11 investment professionals and three sector-specific operating partners, and all investments require alignment with its three-part test: good deal, good company, good people.
How does NUO source proprietary deal flow?
NUO sources entirely through proprietary, bilateral negotiations rather than competitive auctions. The firm reports analyzing over 2,000 deals and meeting 400 entrepreneurs to execute 15 investments. It relies on deep local knowledge in Italy and sector-specific experience, supported by a network of 15 external business partners.
Where does NUO’s underlying capital come from?
NUO’s permanent capital comes from a select group of international, multi-generational entrepreneurial families. The publicly disclosed backers include the Pao Cheng family of Hong Kong, Exor N.V. (the Agnelli family holding company), and the Guerrand family, heirs to the Hermès fortune. The Guerrand family joined as co-investors in 2019, and Exor became a 50% partner in the joint venture in 2021.
Does NUO participate in fund commitments or only direct deals?
NUO operates solely as a direct investor, acquiring minority and majority stakes in operating companies. The firm states that 100% of its deals are primary investments in a proprietary context. It does not make fund commitments to external managers.
What is NUO’s exit strategy given its permanent-capital model?
NUO has no fixed fund life and is not compelled to exit investments on a set schedule. It has executed five exits at a blended 2.4x cost of capital. The firm focuses on long-term value creation through international expansion and operational improvement, and it exits when a transaction creates upside value for all shareholders.
Which sectors does NUO explicitly avoid?
NUO concentrates exclusively on the consumer goods sector, with a specific focus on Italian brands that can scale internationally. It does not invest in industrial goods, financial services, or technology outside consumer applications. The one exception in its portfolio is Bending Spoons, a mobile-app developer NUO backed in 2019 that has since attracted institutional investors.
How is NUO related to Exor and the Agnelli family?
Exor N.V., the holding company of the Agnelli family, is a 50% partner in the NUO joint venture, a relationship established in 2021. Exor’s commitment is part of the permanent capital base that funds NUO’s acquisitions, and the partnership aligns two multi-generational European industrial families behind a shared consumer-goods investment strategy.
Profile maintained by Altss using OSINT (open-source intelligence), regulatory filings, licensed data partners, and verified direct submissions. Read the methodology. Last updated: . Continuous refresh with full update cycles at least every 30 days.
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