Generali Investments, part of Italy’s Generali Group, has entered a deal for a majority stake in MGG Investment Group (MGG), a New York-based private direct lending firm.
The transaction involves Generali Investments’ subsidiary, Conning & Company, purchasing 77% of MGG for $320m at closing, with additional payments contingent on future performance milestones.
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MGG was launched in 2014 by CEO and CIO Kevin Griffin and McCourt Global. It operates in the private lending space, managing more than $6bn in assets.
The firm specialises in providing senior secured loans and structured capital solutions to US middle market companies.
MGG’s focus on non-sponsored borrowers and complex situations has allowed it to deploy more than $10bn across over 175 deals.
Despite the change in ownership, MGG will continue to operate under the leadership of Kevin Griffin, with no alterations to its investment strategy or processes.
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By GlobalDataCurrent shareholders, including MGG management and McCourt Global, will maintain a minority stake in the business.
Generali projects a negative impact on its Solvency II ratio of two percentage points with the deal.
Griffin said: “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.”
Generali Investments general manager and CEO Woody Bradford said: “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.
“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.”
The acquisition is anticipated to be finalised in 2025, pending regulatory approvals and standard closing conditions.
Advisory firms Ardea Partners International and Morgan, Lewis & Bockius are providing financial and legal counsel, respectively, to Generali Investments.
Schulte Roth & Zabel, and Cadwalader, Wickersham & Taft are offering legal advice to MGG and its shareholders, with UBS Securities proving financial advice.
In 2019, Generali took over Polish asset manager Union Investment TFI.
