As attention often focuses on the traditional economic powerhouses, Italy's recent growth highlights the importance of looking beyond the usual suspects. The country is increasingly asserting itself as a key player, with shifting dynamics in both its private equity market and political landscape.

Last year, Italy’s PE and M&A markets experienced exceptional growth, further cementing the country’s leadership in Southern Europe. The PE market reached new heights, with €56.4 billion invested across 496 deals—more than double the previous year’s total—propelling Italy past the Netherlands to become Europe’s fourth-largest PE market. Despite ongoing challenges such as inflation and the fallout from the Russia-Ukraine war, the retail sector remained resilient, contributing significantly to the overall growth. M&A activity also rebounded strongly, with a remarkable 87% year-on-year increase in deal value, reaching €59 billion in the first three quarters alone. PE accounted for 40% of total M&A value, thriving particularly in the consumer, luxury, energy, and infrastructure sectors. As interest rates decline and credit conditions improve, 2025 is expected to see continued robust growth, driven by digitalisation, energy transition, and luxury sector consolidations. Despite this strong performance, Italy’s PE market is still regarded as undervalued compared to other European regions, offering significant untapped potential for investors (PitchBook, 2024; PitchBook, 2024; Intesa Sanpaolo, 2024).

This economic momentum in Italy reflects broader trends across Southern Europe. Countries such as Greece, Spain, Italy, and Portugal have experienced a surprising revival in recent years, starkly contrasting with stagnation in traditionally stronger economies like Germany. Post-pandemic, these nations have seen significant growth, driven by booming tourism, service sector expansion, and substantial European Union investment in infrastructure and green energy projects. However, these nations still face considerable challenges, such as high public debt and bureaucratic inefficiencies. Despite these obstacles, the region’s growth is seen as sustainable, positioning Southern Europe as a stabilising force in the Eurozone (Financial Times, 2025).

The country’s exceptional market performance, combined with its untapped potential and strategic position in Southern Europe, offers a unique opportunity to capitalise on its growth momentum while contributing to its continued economic development. For these reasons, we have defined a direct investment strategy in Italy: meet Kobo Ventures.