Under the terms of the agreement, Conning & Company will purchase 77% of MGG for $320 million at closing, with additional payments based on operating milestones. MGG's current shareholders, including its management team and McCourt Global, will retain a minority stake.
The transaction is expected to close this year, subject to regulatory approvals.
“Acquiring MGG accelerates Generali Investments’ strategic build-out of our private credit capabilities to meet the evolving needs of our clients,” said Woody Bradford, chief executive and general manager of Generali Investments, a global investment management firm that is part of Italy’s Generali Group.
“MGG’s approach complements our existing offerings and positions us better to help clients achieve their direct lending investment objectives.”
MGG will continue under the leadership of CEO and CIO Kevin Griffin, who emphasized the benefits of the partnership.
“Generali Investments is a leading asset management platform with robust strategic resources and a client-focused culture that aligns with our philosophy and values,” Griffin stated. “This transaction enhances our ability to serve our investors and borrowers.”
The deal is expected to have a -2 percentage point impact on the Generali Group’s Solvency II Ratio.
Ardea Partners International LLP is serving as financial adviser to Generali Investments, while UBS Securities LLC is advising MGG and its shareholders. Legal advisers include Morgan, Lewis & Bockius LLP for Generali Investments and Schulte Roth & Zabel LLP and Cadwalader, Wickersham & Taft LLP for MGG.
MGG, which was founded in 2014 by Kevin Griffin and McCourt Global, provides senior secured loans and structured capital solutions to middle-market businesses in the US. The firm has completed more than 175 deals, deploying more than $10 billion, with a focus on non-sponsored borrowers and complex financial situations.
