Abstract:
This dissertation intends to investigate the Private Equity industry by comparing two different
regions: Veneto, Italy and Grand Est, France. The purpose is to analyse the strategies investors
adopt when selecting target firms. The choice of the regions is based on the cities that welcomed
my two M.Sc.’s years, the first one in Venice and the second one in Strasbourg.
The project aims at attempting to give another explanation of the reasons why the Private Equity
industry in Italy struggles to succeed. For this purpose Grand Est turned out to be an important
term of comparison, as it presents an economic fabric very similar to Veneto. This rises the
question about why in the Eurozone, small and medium French companies are the best in
attracting investments from foreign operators while Italians are among the worst.
Starting with a short analysis of the Small and Medium Enterprises, the paper will summarise all
the concepts developed regarding the Private Equity sector in the literature. Moreover, using a
practical approach, the study analysed the Private Equity operations in the two aforementioned
areas. Through surveys and interviews to the main players in the market, the project tries to
identify a dummy company profile that has more chances of obtaining the financial and non-
financial Private Equity support.
This thesis is intended to overcome the round-block marked by the literature as regards the age-
old reasons for Private Equity activity constraint: the undercapitalisation of Italian firms. In order to
accomplish this goal, the paper offers a new approach regarding the future of Italian SMEs.
The findings of the project are surprising. The cross-regional analysis reveals that the territories
under observation are experiencing two opposite Private Equity market trends. In Veneto, many
companies and market experts are familiarising with this form of investment while Grand Est
shows a slight market decrease. The investment process, strictly supervised by the law, is similar
in both regions, such as the improvements obtained in the target firms after the supporting period.
The real difference is given by their organisation. In Grand Est they act as a unified network, while
in Italy they operate separated, burdened by high competition.
Private Equity is a very flexible organisation, because of its ability to adapt to every country’s rules
and industrial framework. This explains why instead of focusing on the corporate side, more
importance is given to funds operations.
This paper aims at providing a practical explanation of the Private Equity market in Veneto and
Grand Est, distancing itself from those rhetorical talks where the possibility of finding solutions are
too often bogged down. An answer to the question regarding development issues for Italian
Private Equity funds is provided, and the paper covers the processes behind their investments.
Further studies are needed to establish guidelines and solutions to emerge from this deadlock.