In an opinion piece for FundsPeople, Andrea Mazzaferro, Senior Managing Director and Head of Primaries Europe, discusses how complexity has become the "new normal" in private equity. Rather than being shaped by a single crisis, today's market environment reflects the interaction of multiple structural forces - from geopolitical tensions and shifting global supply chains to the strategic reshoring of key industries such as AI, rare earths and defense. While artificial intelligence represents a powerful long-term growth trend, it also requires rigorous underwriting and disciplined capital allocation given the elevated uncertainty and risk.
Against this backdrop, private capital remains well positioned. Historically characterized by resilience, patience and disciplined opportunism, the asset class is adapting to a more complex macroeconomic environment. Looking ahead, Capital Dynamics is cautiously optimistic, expecting a gradual recovery in investment and exit activity as financial conditions improve and bid-ask spreads narrow. In particular, small- and mid-cap companies in Italy may benefit from a more dynamic transaction environment.
For investors, this evolving landscape creates opportunities to deploy capital selectively through strategies that combine resilience with agility - participating not only in financial returns, but also in the sustainable growth and competitiveness of strategically relevant businesses.
Read the full article here (available in Italian only).