Key Takeaways
- • Deloitte Luxembourg, Deloitte Italy and JEME Bocconi Studenti analyzed Italian alternative asset classes (private equity, private debt and real estate) in a 2021 study, assessing ESG influence, technological change and the COVID-19 pandemic's effects.
- • Global alternative AUM reached EUR9.64 trillion by June 2020, with growth since 2010 vastly outpacing GDP growth, according to the Deloitte material.
- • Deloitte expects low interest rates to persist given the economic downturn and structural socio-economic changes, which the report says will keep drawing new investors and capital into alternatives.
- • Contractual AIFs remain the most widespread alternative fund structure in Italy, per publisher-domain material on the Italian regulatory regime.
Summary
Deloitte Luxembourg, through its Italian Business Community, published a toolkit on the Italian alternative investment market, prepared in 2021 with Deloitte Italy and JEME Bocconi Studenti, the Junior Enterprise of Bocconi University. The material is aimed at Italian players operating in or considering Luxembourg, and at foreign investors seeking to understand Italian markets. It covers private equity, private debt and real estate, and evaluates each asset class in light of ESG investing, technological change and the consequences of the COVID-19 pandemic.
The report places the growth of alternatives in a macro context. According to Deloitte, global assets under management across alternative investments have grown far faster than GDP since 2010, reaching EUR9.64 trillion globally in June 2020. The shift was driven largely by the low-interest-rate environment, which pushed investors to seek above-average returns elsewhere. Deloitte argues that the low-rate backdrop is likely to persist given the economic downturn and structural changes in the socio-economic landscape, supporting continued inflows into alternative asset classes.
Publisher-domain context adds regulatory detail. Contractual AIFs remain the most widespread structure on the Italian market, and under Italian law the establishment of alternative investment funds is reserved to companies authorized by the Bank of Italy after consulting CONSOB. Oxford Law Pro notes that the common investment fund (Fondo Comune di Investimento, FCI) is the predominant structure for Italian AIFs. Reference material also flags a new Limited Partnership vehicle intended to make the Italian market more attractive for private equity and venture capital, as well as a new law on alternative investment funds reported by Dentons.
The primary source is a marketing-oriented overview that directs readers to a whitepaper for further detail, and it does not disclose specific fund flows, deal values or Italian-market AUM figures beyond the global total cited above.
The report places the growth of alternatives in a macro context. According to Deloitte, global assets under management across alternative investments have grown far faster than GDP since 2010, reaching EUR9.64 trillion globally in June 2020. The shift was driven largely by the low-interest-rate environment, which pushed investors to seek above-average returns elsewhere. Deloitte argues that the low-rate backdrop is likely to persist given the economic downturn and structural changes in the socio-economic landscape, supporting continued inflows into alternative asset classes.
Publisher-domain context adds regulatory detail. Contractual AIFs remain the most widespread structure on the Italian market, and under Italian law the establishment of alternative investment funds is reserved to companies authorized by the Bank of Italy after consulting CONSOB. Oxford Law Pro notes that the common investment fund (Fondo Comune di Investimento, FCI) is the predominant structure for Italian AIFs. Reference material also flags a new Limited Partnership vehicle intended to make the Italian market more attractive for private equity and venture capital, as well as a new law on alternative investment funds reported by Dentons.
The primary source is a marketing-oriented overview that directs readers to a whitepaper for further detail, and it does not disclose specific fund flows, deal values or Italian-market AUM figures beyond the global total cited above.
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