When it comes to private capital, institutional investors in Italy have an increasing variety of options. Exposure to US private equity, for example. And while specialized strategies have emerged (e.g. venture capital), the focus on established buyout funds has been prevailing.

Private equity issuance has been particularly active. For the first quarter of 2024, even with economic, geopolitical headwinds, and the slowdown of global M&A, 104 transactions were recorded. Per a recent ICLG report, this was the most Italian deal volume since 1988.

Italian credit investors have historically been big buyers of fixed-income. While current exposure to private debt has been limited, appetite is growing and follows the same path of PE with some nuances dictated by regulators. For instance, insurance companies are one of the largest investor categories in private debt, even though, when it come US currency exposure, the accounting and Solvency II implications may add an extra layer of complexity.