Conning & Company, the asset management company for insurance and institutional clients owned by Generali Investments, the asset management unit of the Italian insurer, has acquired a majority stake in MGG Investment Group and its affiliates for $320m to expand its private credit business globally.
Conning & Company has signed an agreement to purchase 77% of MGG for $320m at closing, with additional amounts payable subject to the achievement of certain operating milestones, said Generali Investments in a statement last week.
Current shareholders, including the management of MGG and private family company McCourt Global, will retain a minority ownership interest, it added.
Generali Investments, which has €632bn in assets under management (AUM), will benefit from MGG ‘s extensive network and the presence of the firm in the local market to boost sourcing opportunities for private credit deals, maintaining selectivity and discipline across the capital structure and in various market environments, it said.
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.”
He added: “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 of MGG comes as Generali is close to creating a joint venture with Natixis Investment Managers combining the firms’ asset management businesses. The insurer’s investment committee approved the deal, Reuters has reported.
Meanwhile, Generali is expanding in the US by acquiring the majority of MGG, a New York-based private direct lending investment firm with over $6bn AUM.
MGG provides senior secured loans and structured capital solutions to middle market businesses in the US. Since inception in 2014, the firm has deployed more than $10bn across more than 175 deals, with a differentiated focus on non-sponsored borrowers and more complex, bespoke situations, Generali said.
Last year Generali Investments completed the takeover of Conning, previously owned by Cathay Life, a subsidiary of Cathay Financial Holdings, an Asia-based financial institution, to expand its asset management business, benefiting from Conning’s insurance and institutional client base in the US and in Asia.
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