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 non-public credit score capabilities.
MCG is a US non-public direct lending funding agency with over $6bn of property below administration. It gives 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. Extra quantities will likely be payable topic to the achievement of sure working milestones.
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“Buying MGG accelerates Generali Investments’ strategic build-out of our non-public credit score capabilities to fulfill the evolving wants of our purchasers, together with our affiliated insurance coverage firms who will turn into buyers in MGG choices,” stated Woody Bradford, chief govt and basic supervisor of Generali Investments. “MGG’s rigorous credit score underwriting, structuring method and deal with center market, non-sponsored debtors complement our current choices and higher place us to assist purchasers obtain their direct lending funding goals.”
MGG will proceed to be led by chief govt 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 can assist MGG’s future progress and allow us to develop our funding and capital formation capabilities,” stated Griffin. “Generali Investments is a number one asset administration platform with strong strategic assets and a client-focused tradition that’s aligned with our philosophy and values. This transaction is a testomony to the MGG staff and enterprise that now we have constructed over the previous decade, it gives new and higher alternatives for our staff, and enhances our skill to serve our buyers and debtors.”
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The deal is predicted 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.
