Private capital, 2022 best year ever with 23.6 billion invested

THE buy outinstead, with 10.959 billion euros and 185 operations (5,386 million and 159 investments in 2021), ranked first in terms of amount, equal to 46% of the total, closely followed by operations in infrastructure. However, the latter were characterized by an increase compared to the previous year, with 10,695 million euros (+39% compared to 7,671 in 2021), distributed over 52 transactions (45 the previous year, +16%).

The operations of expansion, on the other hand, they decreased both in terms of amount (483 million, -44% compared to 858 in 2021) and in terms of number (46, -23% compared to 60 in 2021). Finally, the turnaround segment, dedicated to companies in difficulty, has maintained a niche role, with only 9 operations and 249 million euros invested.

The collection is stable

In 2022, private equity and venture capital funding amounted to 5,920 million euros (of which 5,084 million raised on the market), up 3% compared to the 5,725 million of the previous year. There were 49 operators who carried out fund raising activities in 2022 (44 the previous year). With reference to the geographical origin of the funds raised on the market, the domestic component accounted for 55%, while the weight of the foreign one was 45%. At the source level, 18% of funding comes from pension funds and welfare funds (890 million euros), followed by insurance companies (13%, 678 million) and banks (9%, 448 million). While the public sector and funds of funds fell from 10.7% in 2021 to 8%. «We have heard from our members and the result of our survey shows us that a lot of funding this year will go to buy out operations (69%), early stage (14%) and infrastructure (12%)» highlights Gervasoni.

Divestments, lack of IPO option

In 2022 the amount divested at the purchase cost of the equity investments was equal to 4,398 million euros, an increase of 63% compared to the 2,702 million of the previous year. The number of exits was 117, +13% compared to the 104 in 2021. The channel most used for divestments was the sale to other private equity operators, with a weight of 60% in terms of amount (2,651 million euros) and 40% in terms of
number (47). «The sale to other financial and corporate operators is preferred, while listings on the Stock Exchange are less frequent» comments Gervasoni.

The international framework

«In 2022 at an international level there was a reduction in collection of 22% in terms of amounts and 49% in terms of operators. The months needed to reach the closing have also increased, now it takes about 20 months» explains Francesco Giordano, Pwc partner, who adds: «A further contraction was recorded in terms of investments to 6,575 deals. The drop was more marked in Europe, with a reduction of 53%, against 8% in the United States. Furthermore, disinvestments have also seen a strong reduction equal to 47% in terms of amount and 45% in number with IPOs which have decreased by 73%, while sales to industrial operators by 33%».