Back in fashion: The Italian private equity market in 2018

05 July 2018

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Mergermarket and Unquote are pleased to present Back in fashion: The Italian private equity market in 2018, published in association with Gatti Pavesi Bianchi. This report provides invaluable insights into Italian private equity in 2018 and examines the risks and opportunities facing businesses in the coming months.
Despite political and financial challenges, Italy currently appears to foster a good climate for private equity activity. This may be due to many retiring business owners seeking a flexible leadership transition for family-run firms, as well as the high number of small- to medium-sized enterprises (SMEs) in the country.
Highlights from the report include:
  • Q1 2018 ranks as the strongest first quarter for Italian PE in terms of both volume and value, according to Unquote data. This follows a volatile year in 2017, which nevertheless represented part of a steadily improving financial climate since 2012; a progression which looks set to continue in the coming months.
  • The number of family-run businesses in Italy (85%) has contributed to the success of PE in the country, since business leaders nearing retirement often turn to the flexibility, capital and expertise that PE allows.
  • The financial sector was the strongest in terms of activity across 2016-17, accounting for 25% of overall deal value between 2016 and 2017. Other popular sectors included industrials & chemicals and technology.
  • Threats to private equity dealmaking in Italy include political uncertainty and concerns around corruption, as well as the banking crisis affecting the country. Businesses have shown that they are able to navigate such obstacles in Q1 2018, and it is probable that they will continue to do so.