Closed-end funds, inflows fall by 40 per cent but investments grow by 17 per cent

In detail, venture capital transactions (investments in early-stage, seed, start-up, later-stage companies) decreased by 8% in terms of amount (EUR 454m), while the number of investments increased by 22% (236), indicating a smaller average size of investments. Buyouts (acquisitions of majority or 100% stakes) increased by 9% in terms of amount (EUR 2,748m) and 17% in terms of number (81). Expansion (minority investments in capital increases aimed at company growth), on the other hand, was characterised by a 27% drop in amount, amounting to EUR 270 million, while the number grew by 30%, with 30 transactions. With regard to infrastructure, there were 20 investments, compared to 7 in the previous year, and the amount grew by 162% (EUR 1,702 million, thanks also to a number of significant transactions).

"The growth in infrastructure investments continues, confirming the need for new infrastructures in our country, which require large amounts of capital," comments Francesco Giordano, private equity leader at Pwc Italia. "Almost 80% of the amount invested in the first half of 2025 came from international funds, while domestic operators are increasingly focused on venture capital and small and mid-market operations, with an average ticket of around EUR 5 million, down from last year.

"In Italy we are witnessing a significant phenomenon: companies that have grown and developed thanks to the investments of international private equity funds are increasingly becoming market leaders. These companies, which often started out as niche or small- to medium-sized businesses, have reached a scale and solidity that make them attractive to large European and global groups in the process of expansion," Giordano comments, adding: "The combination of sustained growth and efficient governance, facilitated by the experience and support of private equity funds, makes these companies the ideal target for acquisition and integration strategies by foreign investors. This trend confirms how private equity is not only an engine for internal development, but also a strategic bridge towards internationalisation and the enhancement of the Italian entrepreneurial fabric in the European ecosystem'.

"July and August went very well in terms of the number of deals. The trend of these first months (of the second half of the year, ed.) is positive and in line with 2024," commented Gervasoni, when asked about the outlook for the Italian private equity and venture capital market during the presentation of the results for the first half of 2025. In addition, 'we see the number of international operators growing, as they are increasingly varied and enrich the offer,' Gervasoni continued.

'We are seeing,' Giordano added, 'an important awakening after the summer period. We will have to see whether the operations being worked on will be completed by the end of the year. Today it is difficult to make a forecast but there is certainly enough ferment'. As far as international operators are concerned, 'there is great attention being paid to the Italian market. There are many international operators who have opened offices in Italy, and this is a very good sign,' Giordano said, explaining that these operators prefer buyout operations (acquisitions of majority or total shares).