Key Takeaways
- • Italy's share of European private credit deal count rose from 2.35% in Q3 2023 to 8.83% in Q4 2025, according to 9fin data.
- • Private credit and banks split the European large-cap market roughly evenly in Q4 2025, a shift 9fin data suggest reflects lenders clawing back share from banks.
- • Mid-market private equity firms are opening Milan offices, and private credit funds are moving in to finance buyouts, with Ares Management cited as a leading lender in the Italian push.
- • Banks remain active in Italian mid-market LBO financing, but the number of banks participating is limited, per Paolo Pascarelli of Private Credit Italia.
Summary
Italy is emerging as a growing centre of European private credit activity, according to 9fin. The share of Italy in the region's private credit deal count climbed sharply, from 2.35% in Q3 2023 to 8.83% in Q4 2025, based on 9fin data. Over the same period, private credit and banks split the European large-cap market roughly evenly in Q4 2025, a development 9fin data suggest reflects lenders regaining ground previously held by banks.
The trend is visible on the ground. Several mid-market private equity firms have opened offices in Milan, and private credit funds are increasingly providing financing for buyouts. Direct lending market growth in Italy is also a focus of 9fin coverage, which cites Ares Management as a leading private credit player driving activity in the country.
Banks have not exited the market. Paolo Pascarelli of Private Credit Italia notes that banks continue to be active participants in Italian mid-market LBO financings, though the number of banks active in the segment is limited. The article, written by Ryan Hesketh, frames the question of whether private credit is about to take on a distinctly Italian character, positioning Milan as an emerging hub for lenders, sponsors and investors.
The trend is visible on the ground. Several mid-market private equity firms have opened offices in Milan, and private credit funds are increasingly providing financing for buyouts. Direct lending market growth in Italy is also a focus of 9fin coverage, which cites Ares Management as a leading private credit player driving activity in the country.
Banks have not exited the market. Paolo Pascarelli of Private Credit Italia notes that banks continue to be active participants in Italian mid-market LBO financings, though the number of banks active in the segment is limited. The article, written by Ryan Hesketh, frames the question of whether private credit is about to take on a distinctly Italian character, positioning Milan as an emerging hub for lenders, sponsors and investors.
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