Banca Leonardo, the fast-growing boutique launched two years ago by Italian banker Gerardo Braggiotti, has taken a stake in an Italian mid-market private equity firm with an option to buy the rest in a move that would mark the company’s first private equity acquisition and its sixth overall.

Leonardo, which was formed in April 2006 by Braggiotti and a group of investors including private equity firm Eurazeo and German insurer Allianz, said in a statement yesterday it has taken a 20% stake in BS Private Equity and has an option to buy the remainder of the mid-market Italian specialist.