Leonardo Maria Del Vecchio is turning to private debt providers to support a €10bn transaction aimed at increasing his stake in family holding company Delfin, as traditional bank lenders step back from the proposed financing package, according to a report by Reuters.
The report cites unnamed sources familiar with the matter as revealing that the deal would see Del Vecchio raise his current 12.5% holding in Delfin to 37.5% by acquiring the interests of two siblings. Earlier discussions on the financing structure involved major lenders including UniCredit, BNP Paribas and Crédit Agricole, but agreement has been delayed amid tightening credit conditions.
Sources said BNP Paribas has recently withdrawn from the financing group, while other banks have become more cautious due to unmet conditions and evolving deal risk, prompting Del Vecchio to explore alternative funding sources such as private credit funds, including discussions with Apollo Global Management.
The shift highlights the growing role of private credit in large European buyout-style transactions, particularly where traditional syndication proves challenging. Private lenders are increasingly stepping in to fill gaps left by banks in high-value, complex family ownership restructurings.
Del Vecchio is seeking to complete the transaction within a tight timeframe, although negotiations have been complicated by disputes over guarantees and inheritance arrangements involving family members. A separate legal resolution with Rocco Basilico, linked to the broader family estate, is also reportedly nearing completion but has yet to be finalised.
Delfin, based in Luxembourg, is a major holding vehicle with significant stakes across several listed European companies, including EssilorLuxottica, Monte dei Paschi di Siena and Assicurazioni Generali, as well as a minority holding in UniCredit.
A shareholder meeting for Delfin is expected at the end of June, which could provide further clarity on the direction of the transaction and financing structure as discussions continue.
