Private debt in Liguriaaccording to data from Aifi-Italian Association of Investment Funds, in 2021 it had a peak in the amount of invested capital, 277 million, while in 2022 and 2023 the amount dropped significantly, to 8 and 4 million respectively. A dynamic that can be explained by the fact that in 2021 the post-Covid recovery required an infusion of capital, adjustments took place in the following years. But perhaps the most significant fact is that in 2023 only 6 investments were registered in the region with 2 companies involved. In 2020 there were 5 investments and 3 companies.
Here are the data relating to Liguria
Liguria does not have geographical and demographic dimensions and an economic system comparable to those of Lombardy, Veneto and Emilia Romagna, regions in the lead for private debt operations, but it is also true that it is full of small-medium enterprises that should be interested in research of diversified forms of financing, private debt such as private equity and venture capital. Furthermore, private debt does not require the transfer of shares of capital and control of the company but un openness towards external know-how, an attitude that still seems not widespread in the region.
In Italy in 2023, collections grew, with a slight decline in investments: «The private debt market has a now recognized role and this can be seen from the collection which for the second consecutive year exceeded one billion euros, with a growth of 14 percent compared to 2022. The role of institutions was fundamental in a market that saw difficulties during 2023 », he declares Innocenzo Cipolletta, president of Aifi.
«This – specifies Cipolletta – is also confirmed by number of operators active in the segment, growing year on year. The total amount invested did not suffer sharp declines and the debt for development increased by 24 percent.”
Here are the private debt market data in 2023 relating to Italy that Aifi presented today, in collaboration with Cdp and Deloitte. The methodology used in data collection is consistent with that for the private equity sector, which is in line with the international one.
Collection
In 2023, the collection of private debt operators active in the Italian market grew by 14% compared to the previous year, reaching 1,141 million euros (of which 1,100 million collected on the market) compared to 1,001 million in 2022. This figure represents the highest value ever recorded. There were 13 operators who raised capital, up from 10 in 2022.
With reference to independent collection, looking at geographical origin, the domestic component represented 90% of the total. The first source of market funding was the public sector and institutional funds of funds (46%), followed by banks (19%) and pension funds and provident funds (16%).
Investments
During 2023, a total of 2,854 million euros were invested in the Italian private debt market, down 12% compared to the previous year (3,228 million), which had recorded record figures. The number of subscriptions was 164 (-37% compared to 262 in 2022), distributed across 109 companies (142 in 2022, -23%).
There were 39 operators who made at least one investment (35 in 2022), of which 20 were international. Domestic entities carried out 70% of the number of operations, while 75% of the amount was invested by international operators. As regards the size of the investments, it should be noted that in 2023 there were 4 companies that received at least 100 million Euros each, for a total amount of 1,504 million Euros, down compared to the 8 companies of the previous year, which they had raised 1,727 million.
Financing represented 55% of cases, bond subscriptions 38% and hybrid instruments the remaining 7%. As regards the characteristics of the operations, the average duration is 6 years and 1 month, while the average interest rate, relating to a sample of operations with fixed rates for which data is available, was equal to 6, 84%3.
With reference to the objectives of the operations, in 2023 75% of the interventions had the aim of implementing programs aimed at the development of the target companies, while in terms of amount, 61% of the total concerned debt to support buy out operations.
At a geographical level, the first Region remains Lombardy, where 33% of the Italian companies subject to investment are located, followed by Veneto (12%) and Emilia Romagna (11%).
With reference to the sectors of activity, in first place with 19% of the number of companies we find industrial goods and services, followed by energy and environment, with 15%. It should be noted that 62% of the target companies have fewer than 250 employees.
Refunds
In 2023, 82 companies made refunds (132 the previous year, – 38%), for an amount equal to 645 million euros (double compared to the previous year, equal to 317 million). Repayment according to the instrument’s amortization plan represented the most used type in terms of number, with 59 reimbursements (66% of the total). There were 16 operators who received refunds (even partial ones), compared to 14 the previous year.
Tags: Private debt grows Italy static Liguria
