Malta is primed to become a regional destination for private equity, according to a leading US-based finance executive with a longstanding connection to the island.

Speaking to investors and service providers on Tuesday evening, Gary Quin said Malta has the right conditions to attract private equity and develop a new economic niche in the financial services industry.

“Malta is nearly there. As the only English-speaking country in the central Mediterranean and with a well set-up [financial services] infrastructure, there really isn’t much holding the country back from being a very attractive location for private equity to consider,” he said.

Mr Quin was speaking during an exclusive members meet-up organised by the newly-launched Private Equity Venture Association (Malta).

PEVCA is a non-profit organisation that aims to promote and support the development of the private equity and venture capital industry in Malta.

It brings together investors, family offices, private equity and venture capital fund managers, advisors, and service providers. The association has been established as a space to network and represent the industry with regulators, the government, and policymakers.

Held at the Casino Maltese, Valletta, Tuesday evening’s meet-up featured a fireside chat led by Stephanie Farrugia, a lawyer and Director of Memberships at PEVCA Malta.

Mr Quin is senior advisor at Cohen & Company Capital Markets, a US-based investment bank. Until recently, he was CEO of the Nasdaq-listed North Atlantic Acquisition Corp.

He is Irish-born but has a long-standing relationship with Malta, having led one of the firms that participated in the leveraged buyout of telecoms firm Melita plc back in 2007 and served as a director during the company’s transformation thereafter.

Asked about the obstacles to Malta attracting private equity investment, Mr Quin pointed to the tax regime surrounding PE and the conservative nature of Malta’s banks.

However, he added, “there really isn’t much holding [Malta] back”.

Turning to what policymakers could do to facilitate this industry, Mr Quin said that he is generally reluctant to encourage any form of government involvement in the industry: “The scariest words you can hear are ‘I’m from the government and I’m here to help’,” he quipped - referencing a famous line by former US president Ronald Reagan.

Looking back on his experience of the Melita buyout, Mr Quin said that private equity had completely changed the profile of the investment, tripling its earnings before interest, taxes, depreciation, and amortisation (EBITDA).

This, he said, is what private equity can bring to the table - an injection, not just of fresh capital, but of innovation, talent, and strategic route to profitability and growth.

Opening the event, PEVCA Malta chairman Martin Galea said that while private equity and venture capital were still in their infancy in Malta, he was confident the industry could become a major economic pillar for the country.

To date, he said, Malta has relatively limited investment opportunities, with a concentration of capital in property and property speculation. PEVCA Malta’s goal is to promote private investment on the island but also to establish Malta as a destination for private equity and venture capital firms and funds, he said.