Italian first and second pillar pension funds are increasingly focusing on domestic public and private market investments, viewing them as a strategic component of portfolios.
Cassa Nazionale del Notariato (CNN), the pension fund for notaries, is now eyeing venture capital investments to support the domestic economy and benefit from favourable tax treatment, said chief investment officer Stella Giovannoli.
From next year, Italy’s first and second pillar pension funds will benefit from tax exemptions on returns if they invest 10% of so-called qualified investments in venture capital.
Private markets represent a strategic pillar in CNN’s portfolio to generate returns, foster diversification, and mitigate volatility.
The pension fund has allocated €24m to private equity funds investing in Italian small and medium-sized enterprises (SMEs), targeting macro trends including digitalisation and the environmental transition.
A further €22.5m has been invested in private debt, a new asset class in the portfolio, spanning direct lending, mezzanine debt and senior secured loans. The aim is to generate stable cash flows and mitigate risk in volatile environments, particularly in the Italian mid-market, Giovannoli said.
“The [private debt] selection process conducted in November included six funds, three of which focused on Italian SMEs, for a total commitment of €12m,” she said.
CNN’s exposure to infrastructure has reached around €60m across six funds focused on renewable energy, storage systems and digital infrastructure, with investments spanning Italy and Europe.
Looking ahead, CNN will prioritise asset managers backing strategies focused on “high-quality Italian SMEs” and structural trends such as the energy transition, digitalisation and healthcare, Giovannoli added.
Similarly, Inarcassa has invested €90m in domestic SMEs within its Italian equities portfolio, which totals €1.73bn, according to its financial outlook for 2026.
These investments were made through two vehicles – one compliant with Individual Savings Plans (PIR) regulations and one ETF – to access markets with high growth potential and lower correlation to large-cap stocks.
Total commitments to support the real economy, both domestically and abroad, reached €500m this year, according to the statement.
Reinforcing home bias
Real economy investments at Fondo Fon.Te, the €6.5bn pension fund for commerce, tourism and services sector workers, are expected to approach €1bn, president Maurizio Grifoni said when presenting the scheme’s 2025 financial results in the Italian Parliament.
Fon.Te has so far invested close to €600m in the real economy through private markets, including €120m in infrastructure, €200m in private equity and private debt, €30m in venture capital and €60m in real estate. It plans to invest a further €50m in illiquid asset classes offering higher returns.
“We need to do more, because we should already be investing €700-750m; 90% of the 40 funds invested [so far] are in Italy,” Grifoni said.
Meanwhile, asset managers are targeting pension funds to deploy capital into Fondo Nazionale Strategico Indiretto (FNSI), a strategic investment vehicle focused on small and mid-cap companies listed on Borsa Italiana.
Generali Investments has launched the Generali Future Leaders Italia fund under the FNSI umbrella, open to first- and second-pillar pension funds.
Italy’s securities market regulator Consob has so far approved six UCITS funds linked to the FNSI, said Francesco De Astis, head of Italian equity at Eurizon, during a webinar organised this week by Assoprevidenza, the association of the complementary pension sector.
“Many investors have already promised to underwrite [the funds],” De Astis said.
Eurizon expects the strategic fund to boost investor interest in domestic equities, as Italy’s home bias remains weaker than in France and Germany, he added.
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