Private equity in Italy has reached a mature stage, with investments reaching approximately €80 billion in 2023. Over the years, the introduction of carried interest (CI), a mechanism that incentivizes managers to pursue high returns, has helped attract talent and maximize the value of investments. However, the tax treatment of CI is a matter of debate, as current Italian regulations on the nature of income generated by CI leave room for different interpretations. In particular, an increase in taxation would risk penalizing a sector that has contributed significantly to business and economic growth.