ITALY - AIFI reports all time high for investments in H1 2007

Ang
10 October 2007

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During a presentation held in Milan this morning, the Italian Private Equity and Venture Capital Association (AIFI) has presented the activity results for the Italian market in H1 2007. The total invested - EUR 1.9bn, which represents an all time high for the industry in a first half of the year, has been mainly channelled into buyouts.

The results of the traditional bi-annual survey, which AIFI conducts with PricewaterhouseCoopers –Transaction Services, also show that the Italian market registered a new record of 153 deals (+29% on first H1 2006 figures), for a total value of EUR 1.9bn (+131% on first semester 2006 figures).

As in previous years, the largest share of the total amount invested flowed into buyouts, which represented about 80% of the total amount invested. There were 42 buyouts, an increase of 34 in relation to H1 2006.

With a total of 55 deals (+129% on first semester 2006 figures), early-stage investments outnumbered expansion deals, representing 36% of the total number of deals, compared to 20% in H1 2006. Expansion deals were steady in volume, increasing from EUR 276m in H1 2006 to about EUR 340m in the same period of 2007.

Finally, about EUR 21m flowed into eight replacement capital deals. Also on the divestments side, H1 2007 was more dynamic than the same period in 2006. The total amount divested, calculated at cost (not including capital gains), reached a peak of EUR 1.4bn (+161% on H1 2006's figures) distributed over 90 exits (+18% compared to 76 divestments in the first semester 2006). Worth mentioning is that the number of write-offs has decreased from an 8% share of the total to 2%.

When it comes to fundraising, the total volume of capital raised has witnessed a substantial increase (+102% on first semester 2006 figures), reaching about EUR 1.4bn. Around 74% of the total amount (equal to EUR 1.1bn) was raised by independent funds focused on the Italian market, also representing an increase of 135% over H1 2006's figures. Fundraising activity was conducted by 15 investors (against 13 houses in H1 2006).