Il private capital is pushing on digitization e ecological transition which are now seen as a greater investment opportunity and no longer just as a protocol to be observed.
Today at the Annual Convention AIFI (the Italian association of private equity, venture capital and private debt) held at the Assolombarda headquarters in Milan with the contribution of KPMG, the data showed that alternative finance in Italy is changing both in terms of structure and investments.
“Private capital has seen a growth in all sectors: private equity, venture capital and private debt achieved record inflows and deals in 2021.” he said Innocent Cipolletta, president of AIFI specifying that "the energy transition is becoming even more urgent than it was before: alongside safeguarding the needs of the climate today there is the problem of diversifying sources of supply".
Private capital: ESG brings value to companies
The change of perspective was underlined by Stefano Cervo, Partner KPMG, Head of Private Equity: “The ESG sector in particular is now perceived as a value and no longer just as a protocol to be observed. We have observed that some investments have been rejected because the companies did not have adequate standards in this area”.
While Maximo Ibarra, CEO of Engineering underlined that 43% of European companies - not only Italian ones - have not yet fully understood what ESG is, but above all they do not know how to move. And the employees themselves don't have the right skills to organize. An evolution is therefore also needed in this sense”.
Strong contribution to ecological and digital transition
Private equity and venture capital they have both made a very important contribution to the ecological and digital transition. In 2021, private equity carried out 24 deals in digitization and 39 in ecological transition, while venture capital closed 53 deals in digitization and 22 in ecological transition. The profile of the operators is also changing: while in venture capital it is above all domestic operators, with 79%, who invest in these sectors in 2021, in private equity there is a greater presence of international operators, with a weight of 64%.
Private capital: a lot has been done, now we need a fund of funds
Cipolletta recognized the fundamental role played by CDP "which has acted as a driving force for investments in innovation and growth" adding that "the MEF's provision on lowering the threshold for investments in the FIA is an important element because it will allow access to alternative funds reserved for a very large number of private wider". "But now we need a dedicated fund of funds that acts as a driving force"
Private capital: record in 2021, Lombardy stands out
During the conference, the data on the record investments of 2021 in which it is noted how they are overall 16,9 billion invested euros in almost 1.000 transactions: private debt invested 2,2 billion euros in 275 transactions, recording an all-time record. Private equity and venture capital have committed 7 billion euros out of 609 operations, private debt has invested 2,2 billion euros out of 275 operations, while investments in infrastructure, 7,7 billion out of 45 operations, data which thus show how evident is the strategic role that private capital is assuming for our country.
Overall there are 1.700 companies in the private equity and venture capital portfolio, of which more than 30% in Lombardy, which stands out as the first region with the largest amount invested and number of transactions completed. Not only that: at European level it is the fifth region immediately after Ile de France, Berlin, London and Madrid, with 3 billion euros invested in 2021, 8,8 if infrastructure is also included.
Infrastructure comes first
The sector of infrastructure in 2021 it is the master with a strong growth in investments compared to the 1.322 million euros made in 2020, ranking first in terms of amount, equal to 52% of the total invested in the course of last year, with volumes equal to 7,7 billion euros (with a significant increase compared to the 1,3 billion of the previous year). Almost 7 billion have been invested in the ICT and energy and environment sectors.
“Transactions in infrastructure in Italy have played a significant role on the private capital market in our country; private equity and venture capital funds have been alongside companies, even those operating in traditional markets, to accompany them in the digital and ecological transformation” he declares Anna Gervasoni, AIFI General Manager. “We have thus given a significant boost to innovation and to the growth of the national economy; we need a continuous commitment by Italian funds alongside public capital, towards new forms of public-private partnerships”. “Ecological and digital transition they drive innovation and the growth of our local economy; however, a greater commitment is needed on the part of Italian funds operating in this sector, thus multiplying investment and growth opportunities”.
Giovanni Gorno Tempini president of Cassa Depositi e Prestiti adds: “Private investments in the ecological transition are even more important in this 2022, characterized by such tragic situations. We need to be prepared from an energy supply point of view and equipped so that renewable energies become increasingly relevant in our economic, corporate and private citizen life. The PNRR is a very relevant opportunity and we must try to make the most of it”. While Enrico Remini, CEO of Cdp Venture Capital underlined how "start-ups - more than 14 thousand at the moment - are the driving force behind the transition to digital and the new green world".
