The sector of the Italian private equity closed 2021 with record data for the value of investments, with a growth of 123% compared to 2020 reaching 14,7 billion, according to data published today by Aifi, in collaboration with PwC Italia-Deals, on the Italian capital market of risk.
Also the private equity and venture capital raising saw a leap (by 119%) compared to 2020 reaching 5,7 billion (of which 5,3 billion raised on the market), more than doubled compared to the 2,6 billion of the previous year, with a very strong domestic component (89%), against 11% of the foreign one.
Pension funds and pension funds at the forefront
Pension funds and welfare funds (+26%) made the greatest contribution to collection, followed by public sector and come on institutional funds of funds (15%) and by banks (14%).
“An exceptional year with important results, we shouldn't be surprised: we come from an extraordinary period, that of the pandemic, in which we have reshaped our lives. There has been a strong need for investment and business re-aggregation," with private equity having "a strategic role in driving innovation and business growth," he said. Innocent CipollettaAifi president.
Infrastructures saw the greatest inflows, followed by buybacks
The sector on which the collection (52%) is that of infrastructure where 7,7 billion were invested (against 1,3 billion in 2020). In second place there are (37,7%) there are operations buy back with 5,3 billion and finally 858 million come from capital increases for company expansions (+142%).
Il venture capital it accounts for 600 million euros (a figure lower than the billion recorded in the research dedicated to the world of startups because only the investments actually paid are considered, not future commitments).
Le expansion operations grew by 142% to 858 million, while the segment of turnaround, dedicated to companies in difficulty, has maintained a niche role with 127 million euros invested. The segment ofearly stage (seed, start up and later stage), grew by 55% to a total of 587 million.
"The second half of 2021 was very effervescent, characterized by very large operations especially in the infrastructure sector, which bring the total investments recorded in 2021 to record levels never seen before" he underlined Francis Jordan, Private Equity Leader of PwC Italy. "Italian companies continue to attract the interest of large international operators who increasingly strengthen their presence in Italy and often contribute decisively to the growth of our excellence on global markets".
Major investments in ICT
The sector that benefited the most from investments was ICT with 28% of total operations, followed by industrial goods and services, 14%, and medical, 12%. 28% of the number of transactions concerned companies with a high technological content: considering only the early stage sector, the value rises to 38%.
Private equity and venture capital 2021: Lombardy in the lead
A geographical level the region that totaled most of the operations is Lombardy with 40% of the number of investments in Italy, followed by Lazio (13%) and Veneto (8%). It should be noted that 56% of the number of investments concerned companies that had never received capital from private equity, for an amount equal to 45% of the total.
THEamount divested the acquisition cost of the equity investments was 2,7 billion, up 69% on the 1.594 million of the previous year. The channel most used for divestments was the sale to industrial entities, with a weight of 32% in terms of amount (871 million euro) and 35% in terms of number (36).
"It was a very important collection, almost at the levels of 2017. After three years of low levels, the market has restarted", he underlined Anna GervasoniAifi general manager. “We still have to work on expansion because 858 million in the growth phase of businesses is still not enough'.
