Direct lender Ares Management Corporation is reportedly backing the merger of UK peers Markerstudy Group and Atlanta Group via a £1 billion loan.
As previously announced, The Ardonagh Group’s personal lines broking business Atlanta will be combined with Markerstudy to create a major new player in the British market.
When the deal – which values Atlanta at £1.2 billion – was revealed, it was noted that Markerstudy majority owner Pollen Street Capital and global investor Bain Capital Special Situations were leading the new investment that would fund the business combination.
Now, in a new report, Bloomberg sources are saying that Ares is supporting the union by lending around £1 billion.
Atlanta’s current parent is no stranger to Ares, which in 2020 served as the lead arranger for a £1.875 billion financing commitment to Ardonagh. The financing transaction was brought to light at the same time that Ardonagh announced its swoop for Bravo Group and Irish commercial insurance broking giant Arachas.
At the time, the financing was described as a major transaction that would support Ardonagh’s growth over the coming years.
Meanwhile Bloomberg said Ardonagh, Markerstudy, Pollen Street, and Ares all declined to comment on the £1 billion loan, while Bain Capital didn’t immediately respond.
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