A report on the Italian PE market was published by unquote this week suggesting the region has a public relations problem. Investors are apparently concerned about investing in Italy, despite the country’s relatively good long-term track record of returns.
Much of the uncertainty is perception, argues one local industry insider. Italy tends to get grouped together with southern European neighbors such as Spain or even Greece. But the economies are not comparable, say industry insiders quoted in the report. Its primary surplus is one of the highest in Europe and the country has a “reasonably stable banking system” that has not needed outside help. High public debt is the nation’s real problem.
As a result of the public perception, fund managers in Italy have to improve communication, transparency and professionalism, said the report. Perhaps the PE industry should take a look at how appealing the Italian tourism board makes travelling, winemaking tours, dining, and hiking. (Image Source. Tourism in Italy website)