(RTTNews) - Man Group Plc (MNGPF.PK,EMG.L), a British investment management firm, said on Thursday that it has inked a deal to buy Varagon Capital Partners, L.P., a U.S. middle market private credit manager, for $183 million in cash, from Aflac Inc. (AFL), Corebridge Financial, Inc. (CRBG), American International Group, Inc. (AIG), and former members of Varagon's management team.
Man Group expects the deal to add to its earnings for the full year after conclusion.
"The acquisition will enhance Man Group's investment capabilities, equipping the firm with a complementary U.S.-focused direct lending strategy designed to provide consistent risk-adjusted outperformance. Crucially, Varagon brings the ability to deploy these investment capabilities at scale in a customisable format to the world's largest institutional investors," the Group said in a statement.
The company will fund the transaction, expected to be closed in the third-quarter, using its existing internal resources.
For 2022, Varagon generated pre-tax profit of $30.9 million, on revenue of $116.3 million. It posted compound AUM growth of 13 percent over the three years to December 31, 2022.
Post transaction, Walter Owens, CEO of Varagon, will continue to lead the Varagon business located in New York, Fort Worth, and Chicago. In addition, Varagon will be renamed as Man Varagon.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
