Alternatives, William Kadouch-Chassaing (Eurazeo): "Italian private credit ready to boom"

French private equity firm with €37 billion in terms of asset under management opens a new office in Milan and bets on the mid-market to support the growth of Italian companies. The goal: to transform SMEs into European champions and unlock the potential of a market that is still largely untapped by alternative assets

 by Giulio Zangrandi

“We are very interest in the Italian market. We want to become the leading platform for private assets in the mid-market segment.” William Kadouch-Chassaing, co-CEO of Eurazeo, frames the firm’s latest move south of the Alps. The firm, with nearly €37 billion in diversified assets under management across strategies ranging from private debt and equity to real estate and infrastructure, has decided to open a new office in Milan to strengthen its presence in Italy - anticipating a season in which alternative assets are expected to rise within European investor portfolios. FocusRisparmio spoke with him to get his perspective on the sector’s future and Eurazeo’s growth plans.

 What prompted you to consolidate your presence in the Italian market? And which business areas are you most interested in?

Private equity and direct lending are growing in Italy, but penetration remains below other European countries. This gap presents a clear opportunity. Moreover, most domestic players are small and locally focused - conditions ideal for an international platform like ours. We are targeting high-growth segments where Europe excels: tech-enabled B2B services, financial services, biotech, medical applications, and environmental solutions. We are also committed to supporting Italy’s generational transition: many SMEs are family-run, with 15% of boards averaging 65 years of age. Startups like Futura, an AI-based edtech company we’ve backed, show growing openness to capital partnerships.

What types of operations are you running in Italy, and which clients are you targeting?

We are addressing the 90% of local mid-caps with fewer than 250 employees. As a European player specialised in buy-and-build strategies, we are convinced we can support them along a growth path and help them turn them into European champions through both organic expansion and through M&A. In terms of clients, we engage with two key groups: traditional institutional investors such as insurers, banks, pension funds and foundations and distribution partners for wealth solutions. We are firm believers in the retailisation of private equity - a trend gaining momentum in Italy. We see strong demand and believe in the strength of our wealth management franchise.

You manage approximately €36.8 billion in diversified assets, of which €27 billion comes from institutional and retail clients. How does Italy contribute to these figures, and what are your goals for the local business?

Over the past 19 years, we’ve deployed over €2 billion and supported more than 50 Italian companies, with stories as emblematic as Moncler's transformation. Our objectives in Italy are in line with the country’s potential - it is currently one of the fastest-growing fundraising markets for our funds. As for private debt, we expect Italy to continue playing a leading role, and we aim to invest a further €300 - 350 million by the end of 2026. To support this growth and be as close as possible to market opportunities and to our partners, we opened our first office in 2021 and announced a new address in Milan this past March.

 You mentioned a buy-and-build approach. What does that mean?

It’s a strategy in which we consolidate smaller companies to help them grow and become European leaders. We apply it across all asset classes - private equity, private debt, real estate, and infrastructure. In Italy, where the mid-cap market is highly fragmented, this model works particularly well. We support companies with secured financing and long-term repayment plans. Some examples of our current projects include GB Sapri, Tikedo, Alma Farmacie, and Excellera Advisory Group.

 What projects are currently in the pipeline, or which funds are about to launch? Are there any new sectors you’re exploring, perhaps in light of emerging megatrends or the impact of tariffs?

We have completed the first closing of the Eurazeo Planetary Boundaries Fund (EPBF), securing €300 million - 40% of its €750 million target. This fund aims to address major global environmental challenges by investing in areas like sustainable agriculture and geothermal energy. We are also preparing to launch our next ELTIF 2 fund, which will allow individual investors to co-invest alongside institutional partners with greater flexibility. In private debt, we are currently fundraising and investing our seventh pan-European Direct Lending fund, maintaining our focus on the lower mid-market segment, where we see the highest transaction volumes and most attractive risk-return profiles. On the technology front, as Europe’s leading tech-focused fund, we are finalising the first closing of the latest vintage of our EGF-IV growth fund.

 What are your growth expectations for private credit, both in general and specifically in Italy? How does the Italian market compare to the French one today?

In France, Germany, and the UK, private debt already accounts for 50% to 70% of buyout or refinancing transactions, but signs of saturation and yield compression are emerging. In Italy, penetration remains below 10%, yet the market shows strong promise. Over the past four years, the sector has grown at a 41% annual rate, with nearly €5 billion invested. We expect private debt funds to continue growing, gradually gaining market share from banks - supported by capital requirement constraints on traditional lenders and increased activity from international private equity firms attracted by primary deal opportunities and solid macro fundamentals.

 And more broadly, what are your expectations for private markets? Do you agree with BCG’s forecast that the retail segment will triple to 15% of global AUM by 2030?

There is no doubt this segment is set for growth. In particular, European mid-market private equity has historically delivered superior long-term returns compared to liquid asset classes. Additionally, private credit is emerging as an asset class with a highly attractive risk/return profile. These factors are especially relevant at a time when Europe must improve how savings are allocated to the real economy. Eurazeo has been a pioneer in the democratization of alternatives, having launched its retail-focused strategy 20 years ago. Today, private clients represent 25% of our total fundraising. To meet this demand and support broader access to private markets for individual investors, we launched the EPVE3 fund. With €3 billion in AUM - allocated 40% to private equity and 60% to private debt - it is currently the largest evergreen fund in France and one of the largest in Europe.