Monroe Capital sells majority stake to Wendel Group
Wendel Group has acquired a 75 per cent equity stake in private credit manager Monroe Capital.
Under the terms of the deal, Wendel – one of Europe’s leading investment firms – will commit $1bn (£0.77bn) in seed capital and GP commitments for current and future Monroe investment strategies.
Wendel will also help to expand the growth of Monroe’s private credit platform in the US.
Monroe will continue to operate independently, with its existing leadership team led by Theodore L. Koenig as chief executive and chairman.
The firm will continue to follow the same investment process, strategy and operations and there will be no change to existing fund commitments and carried interest.
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“We are excited to partner with Wendel on this next chapter of Monroe’s growth,” said Koenig.
“Their commitment to our business will provide meaningful and stable capital to thoughtfully scale our platform and better capture the attractive and expanding opportunity in middle market private credit.
“Specifically, Wendel’s $1bn commitment will accelerate our client-centric growth strategy and deliver meaningful benefits to our global investor base.”
Wendel and Monroe Capital intend for AXA IM Prime to participate in the transaction, with discussions ongoing for AXA IM Prime to become a minority shareholder in Monroe with an investment of up to $50m.
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“We have long known and admired the team at Monroe, who over the past two decades have built a leading middle-market US private credit firm,” said Laurent Mignon, group chief executive of Wendel.
“Since inception, Monroe has delivered strong and differentiated outcomes for its diversified global client base.
“Furthermore, the partnership will strengthen Wendel’s third-party asset management platform by enabling it to capitalize on the growing opportunity set in private credit and persistent growth in demand for direct lending solutions from investors and borrowers globally.”
The transaction is expected to close in the first quarter of 2025.
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