Man Group PLC (LSE:EMG) has beefed up its operations with the US$183mln acquisition of a controlling stake in Varagon Capital Partners, a US middle market private credit manager.
Varagon had US$11.8bn of assets under management and US$15.4bn of total client commitments as at 31 December 2022.
The cash deal will be funded from existing resources and Man Group expects the transaction to be “meaningfully accretive” to management fee and total EPS in the first full year following completion.
Man Group said the deal would bring “significant institutional credibility” to support its growth in US private credit.
Founded in 2014, Varagon is a leader in the US middle market, having completed US$24.5bn of financings to over 300 companies and 138 sponsors.
Walter Owens, CEO of Varagon, will continue to manage the Varagon business, supported by its existing 88 team members across offices in New York, Fort Worth and Chicago.