Private Equity Italy

Private Equity Investing in Italy

Private equity investing in Italy has fallen from the global credit crunch but private equity deals have continued only with more caution and selectivity. Private equity investing in Italy has been on the rise over the last few years after coming to prominence in the mid-90s, and the impact has been generally positive. A report on the Economic Impact of Private Equity and Venture Capital in Italy shows that buyouts have positively effected both revenues and employment in acquired companies. Venture capital had a similar effect on Italy’s economy, increasing staff in venture capital-backed companies and dramatically improving performance.

Last year was big for private equity in Italy, but the crisis over bank lending has made many private equity groups wary and reduced the number of deals made this year. After banks gave huge loans without proper due diligence the market for financing in Italy has dried up somewhat and there has been a big push for greater prudence. Banks have reacted by selling off non-majority assets and turning their focus to the businesses which they can control. In what has been a highly profitable country for private equity, it is now more difficult to make big deals but not impossible.

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