ELTIF 2.0 and Private Capital Mobilization: Risk, Opportunities and the role of Private Banking in supporting the Italian SMEs market

This thesis investigates the potential role of European Long-Term Investment Funds, particularly after the introduction of the ELTIF 2.0 reform, in mobilizing private capital toward long-term investments in Italy. The study focuses on the evolution of ELTIFs as investment vehicles designed to provide access to private markets, while analyzing their risks and opportunities for both fund managers and individual investors. In doing so, the thesis places particular emphasis on the role of private banking professionals as key intermediaries in explaining, distributing and integrating these instruments within long- term wealth management strategies. The Italian context represents a particularly relevant case study. On the one hand, Italy is characterized by a productive system largely based on small and medium-sized enterprises, many of which face structural challenges such as undercapitalization, bank dependence, generational transitions and the need for long-term growth capital. On the other hand, Italian households hold significant financial wealth, often allocated to liquid and conservative instruments, while demographic trends such as longevity and intergenerational wealth transfer are reshaping the need for long-term financial planning. Within this framework, ELTIF 2.0 may represent a potential bridge between private savings, private market investments and the financing needs of the real economy. The thesis analyses the regulatory evolution from the original ELTIF framework to the ELTIF 2.0 reform, highlighting the main innovations introduced to increase flexibility, improve retail accessibility and enhance the attractiveness of these funds for asset managers and distributors. Attention is devoted to the key risks associated with ELTIFs, including illiquidity, valuation uncertainty, cost transparency, regulatory compliance, suitability requirements and potential mis-selling concerns. At the same time, the study explores the opportunities offered by these vehicles, such as portfolio diversification, access to private equity and private debt strategies, potential illiquidity premia and exposure to long-term productive investments. The empirical part of the research adopts a mixed-methods approach. It combines survey addressed to private bankers and financial advisors complemented by secondary evidence on the development of the ELTIF market, Italian household savings, private market trends and the role of private capital in supporting SMEs and extraordinary finance transactions. The expected contribution of this thesis is twofold. From an academic perspective, it contributes to the emerging debate on the democratization of private markets and the distribution of illiquid investment products to private investors. From a practical perspective, it provides insights on how ELTIF 2.0 can be positioned responsibly within the Italian financial system to foster future development.