French investment firm Wendel is to acquire a 75% stake in US asset management company Monroe Capital (MRCC.O) for $1.13bn in a move aimed at strengthening the firm’s presence in the growing private credit market, and boosting its asset management business, according to a report by Reuters.
The acquisition will boost Wendel’s exposure to high-performing asset classes, providing the company with recurring cash flows and targeting double-digit shareholder returns. Wendel’s CEO, Laurent Mignon, highlighted the US as an attractive market, citing its faster economic growth compared to Europe and a more mature asset management sector.
Following the acquisition, Wendel’s exposure to the US will increase from 20% to around 30% of its invested assets. While integrating Monroe, the company remains open to further mergers and acquisitions, particularly in infrastructure and the secondary market.
This deal comes after Wendel’s acquisition of private equity firm IK Partners for €383m ($404m) in October 2023 — part of its broader strategy to build a robust asset management platform. Wendel expects its asset management operations to generate around €185m ($200m) in pre-tax profit by 2025.
In addition to the initial investment, Wendel plans to invest $1bn in Monroe’s capital and may pay up to €250m for the remaining 25% of the business between 2028-2032, depending on the growth of Monroe’s fee-related earnings.
The transaction, slated to close in the first half of 2025, will be financed by Wendel’s internal resources, raising the group’s loan-to-value ratio to approximately 19%, up from 5% in June.
Monroe Capital will retain its brand and operate independently, with its investment committee remaining autonomous, Wendel confirmed.
