Small and medium-sized enterprises (SMEs) in Italy are increasingly turning away from traditional bank loans to seek “new oxygen” from the private sector. In a shifting economic landscape, the corsa dei fondi—a rush for capital—is seeing a surge in companies pitching to private equity and venture capital firms to secure the liquidity necessary for both aggressive expansion and basic survival.
The trend was on full display at the recent “Fiera dei fondi,” an event organized by the Aifi (Italian Association of Private Equity and Venture Capital) and the Small Industry branch of the Unione Industriali Torino. More than 200 companies attended the gathering, a record number that underscores a fundamental change in how Italian business owners view their capital structure. No longer is the bank the sole interlocutor for growth; the “lords of liquidity” are now essential partners in a volatile market.
The data suggests a significant acceleration in deal flow. In Piedmont, 56 operations were recorded in 2025, an increase from 48 in 2024, cementing the region’s position as the third-most active in Italy for investments. Nationally, the market has accelerated by 21%, totaling 887 operations with 11.6 billion euros invested. While these numbers suggest a boom, the motivations behind the capital injection are increasingly diverse, ranging from strategic internationalization to the urgent need to cover rising operational costs.
Beyond Growth: Capital as a Lifeline
For decades, private equity was viewed primarily as a tool for scaling—a way for a successful company to leapfrog into new markets. Today, however, the narrative has shifted. For many SMEs, these resources are now being used to resist economic headwinds and maintain competitiveness in the face of shrinking margins.
Manuele Musso, president of the Piccola Industria dell’Unione Industriali Torino, notes that the goal is to broaden the financial instruments available to SMEs, supplementing bank credit with resources that support innovation and internationalization. But beneath the surface of these strategic goals lies a more complex reality: the generational handover. Many family-run businesses are facing a crisis of succession, with heirs either difficult to find or unwilling to seize the reins, making an opening of the capital a pragmatic solution to ensure company continuity.
Luca Tavano of Borsa Italiana describes the option of listing or opening capital not just as a strategic move, but as an “accelerator”—or, from a different perspective, a “lifeline.” This duality is evident in the varied profiles of companies seeking funds:
- Altea Green Power: The Turin-based renewable energy producer partnered with a North American fund to co-develop nine energy storage plants in Italy, leveraging the strategic importance of the energy transition.
- Blooming Group: The manager of retail networks for brands like Burger King and Jean Louis David approved a 12-million-euro capital increase to support a new industrial plan and shift its operational pace.
The Divergence of the Italian Industrial Fabric
Despite the rush for capital, the “selection process” remains rigorous. Private equity and venture capital firms typically target companies with solid governance, structured processes and clear growth prospects. This creates a widening gap between “structured” SMEs and those struggling to modernize.
The fragility of the system is becoming apparent in recent data from Confindustria Piemonte. For the first time since the pandemic, confidence in the tertiary sector has slowed sharply. Production and profitability have dropped by over 15 points, while orders have fallen by more than 11. The impact is most severe in sectors exposed to geopolitical instability, such as transport and tourism.
| Metric | Change/Value | Trend |
|---|---|---|
| Freight & Passenger Transport | -15.6% | Down from +8.7% |
| Commerce & Tourism | -18.6% | Down from +30% |
| Export Performance | -5.5% | Negative |
| General Profitability | -10.7% | Negative |
This economic cooling is not uniform. A stark divide has emerged based on company size: firms with more than 50 employees continue to see growth margins (production +7.1%), while the smallest enterprises are braking, with production growth slowing to just 1.2%.
A Warning for European Competitiveness
The manufacturing sector is currently maintaining a precarious equilibrium. While employment has risen by 5.2% and production by 2.9%, profitability remains in negative territory at -13.5%. The metalworking sector, in particular, has spent eleven consecutive quarters in negative territory (-3.5%), with the automotive and machinery industries under significant pressure.
Innocenzo Cipolletta, president of Aifi, observes that while the global economy continues to move forward despite wars and oil shocks, the landscape is mutating. He emphasizes that crises will not be negligible and that industry must “equip itself” to face them. This sentiment is echoed by Andrea Amalberto, president of Confindustria, who describes the current quadro as “alarming” with long-term consequences.
Amalberto argues that while Europe possesses the structural and economic tools to act as a superpower, it is hampered by a lack of decision-making speed and political unity. In this environment, opening capital to private equity is no longer just a financial choice; it is a strategic response to systemic fragility.
Disclaimer: This article is intended for informational purposes only and does not constitute financial, investment, or legal advice.
The next critical checkpoint for the region’s industrial health will be the release of the upcoming quarterly analysis from Confindustria Piemonte, which will determine if the current dip in tertiary confidence is a temporary fluctuation or a deeper structural decline.
We invite our readers to share their perspectives on the role of private equity in the SME sector in the comments below.
