Private Equity Investments and the Italian Industry

Enzo Pontarollo and Marco Casè

L'industria, 2007, issue 4, 679-702

Abstract: Private equity investments represent an important way of financing young and dynamic small and medium companies, in order to favour their growth through the provision of funds (expansion capital) to restructure them (turnaround capital) or to carry out a change in ownership, through IPO or the entrance of new shareholders. In Italy, Private Equity Funds were established only recently, since in the past the banking system has succeeded in preventing the approval of legislation ,that were supposed to reduce their influence towards the companies. However, since the end of the '90, the number of venture-backed investments has increased: more than 50% of them are buy out investments, while expansion capital has been provided in 35% of cases. At the end of the analysis, the authors point out that venture-backed investments had a very positive impact on small and medium-sized companies, that could upgrade their production scale, while the effects of many big deals (mainly secondary buy out investments) concerning large firms are more controversial and often are motivated by speculative aims.

Keywords: Private Equity; Medium Companies; Industrial Structure (search for similar items in EconPapers)
Date: 2007
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.rivisteweb.it/download/article/10.1430/25937 (application/pdf)
https://www.rivisteweb.it/doi/10.1430/25937 (text/html)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mul:j0hje1:doi:10.1430/25937:y:2007:i:4:p:679-702

Access Statistics for this article

L'industria is currently edited by Patrizio Bianchi

More articles in L'industria from Società editrice il Mulino
Bibliographic data for series maintained by ().