Acquisitions of small and medium-sized enterprises have given rise to Italy’s wealthy, while private-equity transactions have surged. An estimated 3,500 transactions took place between 2013 and 2025, totaling approximately €362 billion, intensifying competition among banks to recruit ultra-high-net-worth talent.
The Financial Times reports on a battle for talent in Italy’s banking sector over the ultra-high-net-worth business, identifying the sharp increase in private-equity acquisitions of small and medium-sized enterprises over the past decade or more as the backdrop. Estimates by Pictet and the Milan Polytechnic Graduate School of Management indicate that approximately 3,500 transactions, totaling around €362 billion, were completed between 2013 and 2025, which is believed to have helped create wealthy individuals.
Banks are using tied-agent agreements as a weapon in the competition for top talent, paying 1–3% of assets plus half of future earnings upfront. The situation is said to have originated with remarks by then-ECB President Draghi, while industry participants point out that a bank’s competitiveness depends on how it builds relationships of trust with business owners.
The editorial team explains that the extent to which entrepreneurs’ wealth is monetized is linked to trust in the financial sector, and that private-equity acquisitions are driving the monetization of high-quality small and medium-sized enterprises known as hidden gems, creating personal wealth in the process. Some have pointed out that similar liquidity events could spread to regional companies in Japan.