Leonardo Maria Del Vecchio is restructuring an €11 billion financing package aimed at consolidating his control over Delfin, the family holding company behind Italy's luxury eyewear and finance empire. After traditional banking negotiations stalled, he's now exploring a loan from Apollo Global Management, one of the world's largest private credit funds—a shift that signals the evolving mechanics of Italy's corporate finance landscape.
Why This Matters
• Scale: The €11 billion transaction would give Del Vecchio a 37.5% stake in Delfin, up from his current 12.5%, by buying out siblings Luca and Paola.
• Alternative finance is rising: Private credit funds like Apollo offer 5-7 year loan terms, compared to the standard 18 months from Italian banks—an attractive option amid banking sector turbulence.
• Banking disruption: Intesa Sanpaolo's €30.6 billion takeover bid for Monte dei Paschi di Siena has made Italian lenders more cautious about large, long-term commitments.
The Financing Puzzle
Of the total €11 billion package, roughly €10 billion is earmarked for the purchase of the 25% stake from Del Vecchio's siblings, with the remaining €1 billion allocated to refinance an existing personal credit line. The younger Del Vecchio is seeking to consolidate voting power within the holding that controls stakes in EssilorLuxottica, Generali, UniCredit, and Mediobanca—a portfolio representing some of Italy's most strategic corporate assets.
Initial discussions with a banking syndicate that included UniCredit, BNP Paribas, and Crédit Agricole began months ago but have dragged due to disputes over guarantees and structural complexity. Sources indicate that discussions with international banks have become more challenging, particularly in the wake of the Intesa-MPS merger announcement on June 8, which has reshuffled the priorities and risk appetite of Italy's top lenders.
Enter Apollo and the Private Credit Model
Faced with a narrowing financing window and a fragmented banking response, Del Vecchio's advisers are now evaluating a "Plan B" centered on institutional private credit investors. Apollo Global Management has emerged as a lead candidate, offering a fundamentally different lending proposition than traditional banks.
Private credit funds operate outside the heavily regulated deposit-and-lending framework that governs Italian banks. They source capital from institutional investors—pension funds, insurance companies, sovereign wealth funds—and deploy it with greater flexibility on terms, covenants, and duration. For a borrower like Del Vecchio, this means:
• Longer tenor: Loans structured for 5 to 7 years, aligning with strategic timelines rather than short-term refinancing cycles.
• Customized covenants: Fewer standardized requirements, with terms tailored to cash flow profiles and the specifics of the Delfin portfolio.
• Speed and discretion: A streamlined approval process compared to multi-bank syndicates, which must navigate internal credit committees, capital allocation constraints, and regulatory reporting.
Apollo specializes in investment-grade private credit, providing large-scale capital for strategic acquisitions and balance sheet optimization. The firm positions itself as a partner across market cycles, matching long-duration liabilities with long-dated assets—precisely the profile needed for a family holding consolidation transaction.
What This Means for Italy's Corporate Finance
The Delfin financing shift illustrates how Italy's wealthiest families and largest corporations are diversifying their access to capital. Private credit has become a credible alternative to bank lending, especially when traditional lenders face capacity constraints or regulatory headwinds.
The Intesa-MPS merger, announced earlier this month, is reshaping Italy's banking landscape and making banks more cautious about taking on extraordinary, long-duration commitments during a period of internal reorganization and antitrust negotiations. For borrowers, this creates friction. For private credit funds, it creates opportunity.
UniCredit's Continuing Role
Despite the pivot toward private credit, sources indicate that UniCredit—which has maintained a long-standing relationship with Delfin—remains in the dialogue. The bank could participate in a hybrid structure, potentially providing a portion of the financing alongside Apollo or serving in an advisory capacity.
The Path Forward
The coming weeks will determine whether Del Vecchio secures a private credit solution, reverts to a modified bank syndicate, or assembles a hybrid package. The financing discussions underscore that Italy's largest corporate transactions are increasingly diverse in their capital sources.
Del Vecchio is working to finalize a viable financing structure in a compressed timeframe, navigating a banking sector in flux. The shift toward private credit reflects both the practical constraints banks now face and the growing capacity of alternative finance vehicles to step in where traditional lenders have become more selective.
Italy's Evolving Corporate Finance Market
The Delfin case demonstrates a broader trend: private credit is no longer a niche market for Italian corporations. As traditional banks manage major mergers, antitrust remedies, and regulatory reviews, institutional capital from private credit funds is filling a visible gap. For Italy's business leaders and investors, this represents a meaningful shift in how large-scale financing is structured and executed.
