Generali Investments, a global investment management firm and part of the Generali Group, and MGG Investment Group (MGG), a U.S. private direct lending investment firm with over $6 billion in assets under management, announced the signing of a definitive agreement under which Generali Investments’ wholly-owned subsidiary, Conning & Company, will acquire a majority stake in MGG and its affiliates.
Launched in 2014 by Kevin Griffin and McCourt Global, a private family company, New York-based MGG provides “senior secured loans and structured capital solutions to U.S. middle market businesses.”
Since inception, the firm has deployed over $10 billion “across more than 175 deals, with a differentiated focus on non-sponsored borrowers and more complex situations.”
MGG’s network and local market presence offers a range of sourcing opportunities, allowing the investment team to “maintain selectivity and a disciplined approach across the capital structure and in various market environments.”
Woody Bradford, Chief Executive Officer and General Manager of Generali Investments 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.”
MGG will continue to be led by CEO & CIO Kevin Griffin with “no changes to MGG’s investment strategy or processes.”
Kevin Griffin said:
“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. 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.”
Conning & Company has signed a definitive agreement to purchase “77% of MGG for $320 million at closing with additional amounts payable subject to the achievement of certain operating milestones.”
Current shareholders, including MGG management and McCourt Global, will retain a “minority ownership interest.”
The transaction is expected to close in 2025, “subject to customary approvals and closing conditions.”
The estimated impact on “the Generali Group’s Solvency II Ratio is approximately -2 percentage points.”
Ardea Partners International LLP is serving “as financial advisor and Morgan, Lewis & Bockius LLP is serving as legal advisor to Generali Investments.”
UBS Securities LLC is serving “as financial advisor and Schulte Roth & Zabel LLP and Cadwalader, Wickersham & Taft LLP are serving as legal advisors to MGG and its shareholders.”
