Private Equity and Venture Capital. Market Evolution and Operational Profiles: The Role of Financial Intermediariess - Economicus

By Sara SHABA, Prof. Asoc. Dr. Giampiero MACI

Abstract
Purpose: This paper investigates risk capital investment activities, in particular Private Equity and Venture Capital in the Italian financial system in comparison with the Albanian reality. It looks like a topic that apparently seems complex, but it is a simple mechanism that has spread, especially in recent years,
Methodology: The paper is a descriptive study of the literature of private equity and venture capital. Qualitative methods are used in the development of the paper, browsing mainly foreign literature, by reviewing different scientific papers. Firstly, the authors address the topic of Private Equity and its importance in the market, the improvement and the development of this concept, the relevant investor categories and the main types. After this description, the author will analyze the investment process of Private Equity, comparing the Italian market which is very developed and the Albanian market which has only introduced various initiatives at an institutional level concerning banks and businesses.
Findings: Comparing to Italian financial system the authors conclude that in the Albanian financial system these investments are still very rare, in fact only a few banks and ALSE carry them out. This is mainly due to the distrust that exists between people but also to the lack of familiarity with using these tools.
Value: This study can serve as a starting point for more in-depth studies in this field. The study also, contributes to a better understanding of this type of investments which in Albania are very rare but we think it is time to use them as an alternative to traditional forms of investment.
Keywords: Private Equity, Venture capital, Sustainable finance, financial market.