Generali Investments Expands Global Private Credit Capabilities with MGG Acquisition

Generali Investments, a leading global investment management firm and part of the Generali Group, has announced a significant strategic move by acquiring a majority stake in MGG Investment Group ("MGG"), a U.S.-based private direct lending investment firm with over $6 billion in assets under management. This acquisition, set to close in 2025, will expand Generali's global private credit capabilities and better position it to meet the evolving needs of its clients, including affiliated insurance companies.

MGG, founded in 2014 by Kevin Griffin and McCourt Global, specializes in providing senior secured loans and structured capital solutions to U.S. middle market businesses. With a differentiated focus on non-sponsored borrowers and more complex, bespoke situations, MGG has deployed over $10 billion across more than 175 deals since its inception. The firm's extensive network and local market presence offer a wide 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, commented on the acquisition, "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 the firm's investment strategy or processes. Griffin expressed his enthusiasm for the partnership, stating, "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, a wholly-owned subsidiary of Generali Investments, will acquire a 77% stake in 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 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.



This strategic acquisition by Generali Investments demonstrates the firm's commitment to expanding its global private credit capabilities and meeting the evolving needs of its clients. By acquiring a majority stake in MGG, Generali will gain access to a different segment of the market, diversify its investment portfolio, and potentially achieve higher returns by taking on more risk. MGG's extensive network and local market presence will also bring strategic advantages, such as a wide range of sourcing opportunities, better understanding of local markets, and an enhanced ability to serve both investors and borrowers.