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A strategic step in private credit
Generali Investments, through its subsidiary Conning & Company, recently announced an important acquisition: 77% of MGG Investment Group, a company specialized in direct loans for the middle market in the United States. This transaction, worth 320 million dollars, represents a significant step forward for Generali in the private credit sector, an area in continuous expansion and increasingly crucial for the investment strategies of insurance companies
.
Details of the agreement and expected impacts
The transaction, which is expected to close in 2025, is subject to approval by the competent authorities. MGG, founded in 2014 and headquartered in New York, has accumulated a portfolio of senior secured loans and structured capital solutions, with more than 10 billion dollars invested in more than 175 transactions. The acquisition not only strengthens Generali’s position in the American market, but also offers the opportunity to further diversify its investment offerings, thus responding to the evolving needs of
customers.
The future of MGG under Generali
Kevin Griffin, CEO of MGG, will continue to lead the company, keeping the operating strategy unchanged. This is a crucial aspect, as continuity in leadership and strategy is crucial to ensure successful integration. Griffin emphasized that this partnership represents a new chapter for MGG, allowing the company to expand its investment and capital formation capabilities. The synergy between the two entities promises to create significant value for investors and to improve MGG’s ability to meet market needs
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Final thoughts on the acquisition
This acquisition is seen as a recognition of the work carried out by MGG over the past ten years and as an opportunity for employees to grow within a larger and more robust structure. With the assistance of high-profile financial and legal advisors, Generali Investments is preparing to navigate the complexities of this transaction, which will have an estimated impact of about -2 percentage points on the Group’s Solvency II Ratio. The transaction not only strengthens Generali’s position in the private credit market, but it also represents an opportunity to innovate and adapt to future challenges in the
sector.
