Italy Private Equity Market

Italy Private Equity Market Overview:

The Italy private equity market size reached USD 18,269.37 Million in 2024. The market is projected to reach USD 38,899.70 Million by 2033, exhibiting a growth rate (CAGR) of 8.76% during 2025-2033. The market is powered by increasing interest in technology-enabled firms, rising cross-border M&A, the wealth immigration wave to Milan, and SME succession dynamics. Consolidation across traditional sectors further enhances Italy private equity market share.

Italy Private Equity Market Trends:

Innovation and Digital Transformation

With companies aiming to modernize and keep pace with swiftly evolving technological environments, private equity firms are focusing their investments on firms that are embracing digital transformation and technological improvements. This trend is especially pronounced in areas such as fintech, artificial intelligence (AI), and e-commerce, where private equity investors view digital transformation as a crucial factor for scalability and international competitiveness. Italy’s robust industrial background, especially in manufacturing and design, offers a strong basis for technological advancement, as numerous firms are making digital shifts to enhance operations and boost efficiency. In 2024, as per the IMARC Group, Italy's e-commerce sector achieved USD 622.1 Million, highlighting the growing demand for digital services and platforms. Private equity firms are leveraging these trends by funding businesses that are adopting emerging technologies to improve their services, optimize operations, and access new markets. These investments assist Italian firms in updating their operations and enhancing their competitive advantage, which in turn contributes to the market growth in Italy.

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Family Investment and Strategic Partnerships

The Italy private equity market growth is driven by the increasing involvement of family offices and high-net-worth individuals (HNWIs) in strategic investment partnerships. These entities often seek to diversify their portfolios by aligning with private equity firms that offer high return potential while also allowing for active involvement in the management and strategic direction of the business. A notable example of this trend is the 2025 investment by the Moratti and Gavio families in Francesco Canzonieri’s private equity firm, Nextalia. The families became shareholders through a capital increase, reflecting their commitment to the growth potential of the firm. As part of this collaboration, Angelomario Moratti and Francesco Vercesi joined the board of Nextalia, bringing valuable expertise and governance to the firm. The success of Nextalia’s new fund, which raised €370 million, illustrates the growing confidence in family-backed investments and their positive impact on the private equity market, as they contribute significant capital while also enhancing strategic oversight.

Increasing Cross-Border Investment Activity

There is rise in cross-border investment, as international and European private equity firms are increasingly focusing on Italian companies. This trend results from Italy's advantageous geographical position, robust industrial foundation, and significant growth potential presented by developing sectors like technology, renewable energy, and healthcare. Italy’s inclusion in the European Union provides access to a larger market, making it an appealing choice for investors seeking to broaden their portfolios beyond their own countries. Moreover, the stability of the Italian market, combined with its entrepreneurial culture and a well-trained workforce, makes local firms attractive acquisition options for international investors aiming for diversification and expansion in stable, yet evolving economies. Cross-border private equity deals are further enhanced by Italy's robust ties to other key international markets, enabling investors to utilize Italy's infrastructure and knowledge to access nearby markets.

Italy Private Equity Market Growth Drivers:

Favorable Regulatory Environment

The presence of a supportive regulatory framework that successfully harmonizes investment promotion and the safeguard interests of stakeholders is positively influencing the market. Recent legislative changes are making notable progress in strengthening corporate governance frameworks, boosting transparency, and diminishing bureaucratic inefficiencies that historically obstructed business activities. Specifically, these changes are simplifying the regulatory structure for mergers and acquisitions (M&A), facilitating private equity firms in closing transactions. Additionally, Italy is implemented specific tax incentives designed to encourage investment in start-ups and small to medium-sized enterprises (SMEs), areas often regarded as high-risk yet able to generate substantial returns. These efforts not only draw in venture capital and acquisition firms but also promote the development of innovative sectors, thereby boosting Italy’s competitiveness internationally. The government's persistent dedication to upholding an open, transparent, and competitive investment environment, along with fiscal and legal reforms, fosters a dynamic setting that encourages the sustained growth of private equity in the nation.

Strengthening Entrepreneurial Ecosystem

Italy is seeing a significant increase in start-ups, especially in areas like technology, sustainability, and life sciences, indicating a thriving entrepreneurial environment. This development is driven by a nurturing ecosystem of incubators, accelerators, and venture capital funds, which offer initial capital and essential mentorship to new businesses. As a result, private equity firms are paying more attention to these promising start-ups, attracted by their capacity for rapid scaling and their potential to challenge conventional industries. Additionally, Italy's educational establishments, several of which provide robust engineering and business curricula, are fostering a new wave of entrepreneurs armed with the expertise and understanding needed to promote innovation. These educational institutions, along with a dynamic start-up landscape, foster an atmosphere where new enterprises can thrive. As the ecosystem evolves, private equity investors encounter a growing number of appealing prospects to support founders, which in turn enhances the dynamic growth and competitiveness of the Italian market.

Availability of Capital and Financial Support

The rising influx of capital, driven by greater interest from institutional investors like pension funds, sovereign wealth funds, and family offices, is propelling the market growth. These investors are attracted to Italy because of its fairly stable economic forecast and the appealing returns presented by an increasing variety of high-potential industries, such as technology, healthcare, and renewable energy. Additionally, Italian banks and financial entities are adjusting to the changing environment by providing more customized and adaptable financing options. These comprise debt-equity co-investments and hybrid funding configurations, which assist in reducing the risks linked with private equity investments. The accessibility of this financial assistance is reducing entry obstacles for private equity firms, enabling investments in not just large, established companies but also in high-growth start-ups and SMEs. This dynamic funding environment is helping to drive significant investments in strategic acquisitions, business transformations, and ultimately creating added value and strengthening the overall growth of the industry.

Italy Private Equity Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country/regional levels for 2025-2033. Our report has categorized the market based on fund type.

Fund Type Insights: 

• Buyout
• Venture Capital (VCs)
• Real Estate
• Infrastructure
• Others

The report has provided a detailed breakup and analysis of the market based on the fund type. This includes buyout, venture capital (VCs), real estate, infrastructure, and others.

Regional Insights:

• Northwest
• Northeast
• Central
• South
• Others

The report has also provided a comprehensive analysis of all the major regional markets, which include Northwest, Northeast, Central, South, and others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Italy Private Equity Market News:

• In September 2025, Ropes & Gray opened a new office in Milan, enhancing its European platform with a focus on private equity. Partners Aldo Piccarreta, Giorgia Lugli, and Luca Maranetto joined the firm’s Private Equity group, bringing strong expertise in Italy and Europe. This expansion reflects rising client demand for cross-border services in Italy, now Europe's fourth-largest private equity market.
• In September 2025, Partners Group and Sella SGR launched Italy's first evergreen private equity ELTIF fund, Partners Group Private Equity Opportunities SICAV, aimed at retail investors with a minimum subscription of €10,000. The fund, structured under the ELTIF 2.0 regime, allows monthly subscriptions and quarterly redemptions, offering exposure to a diversified portfolio of unlisted companies.
• In November 2024, Primo Ventures rebranded as Primo Capital SGR and expanded into the Private Equity sector with the launch of the Primo Health fund. The €120 million fund focused on investing in Italian SMEs in the healthcare sector, backed by prominent investors like the European Investment Fund and Fondo Italiano d'Investimento.
• In July 2025, Asian private equity firm FountainVest agreed to buy a 45.7% stake in Italy’s EuroGroup Laminations, an electric motor component maker, from EMS Euro Management for €3.85 per share, a 64% premium. The deal, valued at €626 Million, includes plans to eventually take the company private by acquiring the remaining shares.

Italy Private Equity Market Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Italy private equity market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Italy private equity market.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Italy private equity industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.