Generali Investments, the asset administration arm of the Generali Group, is shopping for a majority stake in MCG Funding Group for $320m (£262.7m) to spice up its personal credit score capabilities.
MCG is a US personal direct lending funding agency with over $6bn of property underneath administration. It offers senior secured loans and structured capital options to US middle-market companies.
The acquisition is being made by Generali Investments’ wholly-owned subsidiary, Conning & Firm, which is shopping for a 77 per cent stake in MCG. Further quantities shall be payable topic to the achievement of sure working milestones.
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“Buying MGG accelerates Generali Investments’ strategic build-out of our personal credit score capabilities to satisfy the evolving wants of our purchasers, together with our affiliated insurance coverage firms who will turn into traders in MGG choices,” mentioned Woody Bradford, chief government and basic supervisor of Generali Investments. “MGG’s rigorous credit score underwriting, structuring method and concentrate on center market, non-sponsored debtors complement our current choices and higher place us to assist purchasers obtain their direct lending funding targets.”
MGG will proceed to be led by chief government and chief funding officer Kevin Griffin with no adjustments to MGG’s funding technique or processes.
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“Our partnership with Generali is an thrilling new chapter that may help MGG’s future progress and allow us to develop our funding and capital formation capabilities,” mentioned Griffin. “Generali Investments is a number one asset administration platform with strong strategic sources and a client-focused tradition that’s aligned with our philosophy and values. This transaction is a testomony to the MGG workforce and enterprise that we’ve got constructed over the previous decade, it offers new and better alternatives for our workers, and enhances our means to serve our traders and debtors.”
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The deal is anticipated to shut this 12 months, topic to customary approvals.
Ardea Companions Worldwide is serving as monetary advisor and Morgan, Lewis & Bockius is serving as authorized advisor to Generali Investments. UBS Securities is serving as monetary advisor and Schulte Roth & Zabel and Cadwalader, Wickersham & Taft are serving as authorized advisors to MGG and its shareholders.