Generali Investments, the asset management arm of the Generali Group, is buying a majority stake in MCG Investment Group for $320m (£262.7m) to boost its private credit capabilities.
MCG is a US private direct lending investment firm with over $6bn of assets under management. It provides senior secured loans and structured capital solutions to US middle-market businesses.
The acquisition is being made by Generali Investments’ wholly-owned subsidiary, Conning & Company, which is buying a 77 per cent stake in MCG. Additional amounts will be payable subject to the achievement of certain operating milestones.
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“Acquiring MGG accelerates Generali Investments’ strategic build-out of our private credit capabilities to meet the evolving needs of our clients, including our affiliated insurance companies who will become investors in MGG offerings,” said Woody Bradford, chief executive and general manager of Generali Investments. “MGG’s rigorous credit underwriting, structuring approach and focus on middle market, non-sponsored borrowers complement our existing offerings and better position us to help clients achieve their direct lending investment objectives.”
MGG will continue to be led by chief executive and chief investment officer Kevin Griffin with no changes to MGG’s investment strategy or processes.
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“Our partnership with Generali is an exciting new chapter that will support MGG’s future growth and enable us to expand our investment and capital formation capabilities,” said Griffin. “Generali Investments is a leading asset management platform with robust strategic resources and a client-focused culture that is aligned with our philosophy and values. This transaction is a testament to the MGG team and business that we have built over the past decade, it provides new and greater opportunities for our employees, and enhances our ability to serve our investors and borrowers.”
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The deal is expected to close this year, subject to customary approvals.
Ardea Partners International is serving as financial advisor and Morgan, Lewis & Bockius is serving as legal advisor to Generali Investments. UBS Securities is serving as financial advisor and Schulte Roth & Zabel and Cadwalader, Wickersham & Taft are serving as legal advisors to MGG and its shareholders.
