(Bloomberg) — Wendel has agreed to acquire a majority stake in private lender Monroe Capital, which manages almost $20 billion, according to people familiar with the matter.
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The acquisition would extend Paris-based Wendel’s reach in private credit at a time when the lending category is booming. The deal includes an additional commitment of up to $1 billion of capital to grow Monroe’s business and seed new funds, the people said.
The agreement could be announced as soon as Tuesday, said the people, who asked not to be identified because the information is private.
Timing of the announcement and other details could still change, the people said. Representatives for Wendel and Monroe didn’t immediately respond to requests for comment.
Chicago-based Monroe provides private credit to borrowers in the US and Canada, according to its website. Theodore Koenig, who founded the company in 2004, is its chairman and chief executive officer.
The lucrative and growing world of private credit has attracted firms including Apollo Global Management Inc., Blackstone Inc., Ares Management Corp. and Blue Owl Capital Inc. It’s also spurred acquisitions and partnerships by firms seeking to expand their reach.
Last year, TPG Inc. bought credit firm Angelo Gordon for $2.7 billion. BlackRock Inc. agreed this year to buy Adebayo Ogunlesi’s Global Infrastructure Partners for about $12.5 billion in a transformational deal for the industry.
Blue Owl has struck multiple deals this year, including agreeing to buy credit manager Atalaya Capital Management. BlackRock is among the firms exploring a purchase of HPS Investment Partners, Bloomberg News reported this month.
Apollo has teamed up with Citigroup Inc. on $25 billion worth of private credit deals over the next five years. Lazard Inc. has also considered several opportunities to acquire a private-credit firm.
–With assistance from Paula Seligson, Silas Brown and Gillian Tan.
(Updates with additional commitment in second paragraph)
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