unquote's Amy King speaks to AIFI president Innocenzo Cipolletta about the difficulties and opportunities in the Italian private equity market.
State-backed funds have really anchored a tumultuous indigenous market this year, and it looks like they are set to stay. "Like in other European countries, state-backed funds play an important role in this difficult moment," Cipolletta highlights. "And with a duration of 15 years, I think this will continue to play an important role."
With the majority of GPs in the audience at the unquote" Italia private equity congress in Milan citing state funds as their main competition next year, and previous concerns highlighted over an uneven playing field, these vehicles continue to spark debate.
But government funds are, of course, necessary in such economic conditions. And the government's efforts are helping to level out dealflow across the country, with a rising number of deals in Southern Italy particularly within the venture scene. While this shift has largely been welcomed, will it continue? "I think and I hope so," explains Cipolletta. "And some private funds have invested in the south of Italy, where there are good universities, and I think this trend will continue."
Turning to next year, optimism fades a little. "I think we will have a very modest recovery after this year's recession," Cipolletta suggests. "I think the main problem [for the private equity industry] will remain fundraising, particularly foreign fundraising because the euro crisis has provoked the separation of capital markets and the inflow of capital into markets under attack, like Italy, stopped and we have a problem fundraising." For the staggering 96% of GPs in the audience who revealed their intention to hit the fundraising road soon, the road could be rocky.
Your comment will be moderated before publication.
Pantheon Ventures has teamed up with non-profit organisation Sponsors for Educational Opportunity (SEO) in a bid to encourage ethnic minority college undergraduates to pursue a career in private equity.
21 May 2013 |
More from Southern Europe unquote
Updating your subscription status
CVC’s €3bn buy-back of Ista in April caused much excitement for German private equity in 2013, though a deeper look at the figures......
“Some key ideas are currently gaining ground,” said Afic chairman Louis Godron at the association’s annual conference in Paris......
The UK & Ireland’s first quarter activity levels are at their lowest level for the past five years, according to the latest research......
For almost 40 years, Sweden was one of the few countries in the world where private retail of pharmaceuticals was banned.
Italian businesses are struggling. In the first quarter of the year, 4,218 Italian firms went bankrupt according to financial newspaper......
It’s official: Central and Eastern Europe is unsexy. It is the least desirable geography for family offices to invest in, according......