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(Alliance News) - Man Group PLC said on Thursday that it has entered into an agreement to acquire a controlling interest in Varagon Capital Partners LP.
Man Group, a London-based hedge fund manager, said after the completion of the agreement it will pay USD183 million in cash to selling interest holders Aflac Inc, Corebridge Financial Inc, American International Group Inc, and former members of Varagon's management team.
Varagon is a US-focussed middle market private credit manager with USD11.8 billion of assets under management, and USD15.4 billion of total client commitments.
The transaction is subject to regulatory approval and is expected to be completed in the third quarter of the year.
Upon completion, Varagon will become known as Mans Varagon.
"Varagon's strong and experienced management team and high-quality, sophisticated client base, with a particular emphasis on the insurance channel, bring significant institutional credibility to support Man Group's growth in the US private credit," Man Group said.
Man Group said that after it completes the transaction, Varagon's Chief Executive Officer Walter Owens will continue to manage the business, and the firm's access to new investors will be supported by Man Group's global distribution.
Incoming Chief Executive Officer Robyn Grew said: "This acquisition is indicative of our commitment to diversifying our client offering and our strategic expansion ambitions in the US.
"Varagon has built a high-quality investment platform and shares our vision to deliver outperformance for clients."
Shares in Man Group were up 1.3% at 220.90 pence in London on Thursday morning.
By Will Neill, Alliance News reporter
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