Italy – Year in Review & Outlook

3 minute read

2025 Highlights

In Italy, deal activity was strong throughout 2025. Sectors which drove this activity included infrastructure, with four deals completed, alongside manufacturing, pharmaceuticals, consumer products, and food & beverage. This year also marked the Milan office’s first investments in sports financing, coming from partnerships with two major football clubs.  

Borrowers were predominantly mid-market, family-owned, or municipality/government-related companies. The team partnered with six new companies and worked with six existing issuers, setting up five new Shelf facilities over the year.

Private Placements

The team achieved strong private placement production, with transactions seen across a number of both new and existing issuers. Most transactions supported investment into expansion, refinancing, and extending maturities of current debt.  

Shelf facilities played a central role especially in uncertain market conditions, as they can offer issuers flexibility and are a result of our long-term, relationship driven approach to lending.  

Direct Lending

Direct Lending opportunities in Italy started the year at lower pace amid market uncertainty, particularly in the first quarter of the year. However, this created space for more selective opportunities that align with PGIM’s strategy as the condition evolved.

As PGIM’s investment vehicle offerings expand, we anticipate higher levels of capital will become available for investments in the region.  

Real Assets

The team expects Real Assets to be an area of growth, noting an increasing number of opportunities in the asset class. Stable, defensible sectors such as concession-based utilities remain a consistent focus throughout the region.

Renewables, including solar, wind, and battery storage, continue to be strong in Italy, supported by incentive schemes and favourable power prices.  

Transportation remains a key driver of infrastructure-related investment with the development of new, and upgrading of existing, transportation infrastructure.  

Outlook for 2026

Looking ahead, Shelves are expected to remain popular, particularly for companies without immediate financing needs. Renewables and Real Assets will continue to be important areas of focus.  

If interest rates stabilise, refinancing and M&A activity may increase in the region. The team also observed a shift toward continuation funds and increasingly sophisticated mid-market financing structures.

The ability to partner with clients in both uncertain and stable market conditions is seen as a strength, and the team’s internal strategy will continue to focus on areas of competitive advantage.