Businesses: Investments in the South? For private equity, the interest is zero. And the Bridge will not change one iota.

The mid-cap investor: “The South with its SMEs is a potential gold mine for venture capital. Rather, we should invest in information highways”.

About 8 billion euros were invested in Italian companies by private equity in Italy in the first half of 2024 (compared to 2.2 billion in the first quarter of 2023), according to the recent “Italy Private Equity Confidence Survey“  report by Deloitte Financial Advisory with the support of AIFI – Italian Private Equity and Venture Capital Associationwhich provides indications regarding the expectations of the main PE operators on the performance of their sector for the second half of 2024. Of these, according to the study, it is expected that 90% of the private capital that will be invested in Italy will be concentrated in the North, while no fund plans to invest in companies located in Southern Italy.

“A picture that describes an unacceptable imbalance for one of the G7 economies - comments the mid-cap investor Giovanna Voltolina – above all because as an investor who believes and invests in the South, it originates from a cultural block, certainly supported and fueled by an inadequate infrastructure context but, I believe, above all from a general prejudice towards SMEs in the South,  which instead represent real excellences with an enormous potential that if only it could be facilitated would attract at least ten times what it collects today”.

During the first half of 2024, the Private Equity (PE) sector in Italy recorded a total of 217 transactions, with a total value of approximately €8 billion (a figure that discounts the absence of so-called mega-deals, i.e. billion-dollar transactions), during the reporting period mainly in the industrial products, services, food & beverage and consumer goods sectors.

Forecasting, investors interviewed by Deloitte Financial Advisory state that by the end of the year their portfolios will tend to consist of 24.6% (+12.5% on the previous period) of companies and SMEs with a turnover between 16 and 30 million euros, with an increasing trend of +12.5% compared to the previous period, realistically to the detriment of companies with a turnover between 30-50 million euros on which investments would be reduced by -13.5% to 19.3% of the market.

Analyzing the geographical area , the Deloitte report confirms the preference of interest in investments located in Northern Italy, with 87.7% of responses, in Central Italy with 8.8%, while Southern Italy is not in the crosshairs of any operator.

“And in the face of this data, I say: investors, broaden your horizons! Southern Italy is a hotbed of companies with very high potential and innovative entrepreneurs able not only to increase turnover but also to compete as made in Italy even on international markets – comments Giovanna Voltolina who, for example, has invested in Deghi, an Apulian company that has extraordinarily taken off thanks to the quality of its people – and specifically I would look at young entrepreneurs who need support to accelerate growth”

“However – continues the expert – the State must also adapt because more than sprinkling investments, and without medium-long term thinking, I add, or very large works, the Centre-South, just as our whole country needs long-term industrial thinking, coherence but above all stability and clarity on legislative support for businesses: it is not acceptable – underlines Voltolina – that from one year to the next the rules change and entrepreneurs must always navigate on sight without constant support, especially easy to read and interpret”

The Bridge over Messina Sea? “In the logic of an international investor, not a comma will change – underlines Giovanna Voltolina, the highways that are needed are the IT ones“