The French company will also invest US$1 billion to support the US firm’s growth, which will retain its brand and continue to operate autonomously
FRENCH investment company Wendel will acquire US asset investment firm Monroe Capital, it said on Tuesday (Oct 22), with an initial investment of about US$1.1 billion for 75 per cent of the company’s shares.
Wendel’s asset management platform is expected to generate about 185 million euros (S$263.5 million) of pre-tax profit in 2025, the group said in a statement.
The French investment company added that it expects to benefit from the surge in demand for private-credit solutions and to continue building its asset management business with the acquisition.
The move will also provide it with “recurring and growing cashflows as well as exposure to multiple and high-performing asset classes”.
Wendel announced in October 2023 the acquisition of private equity firm IK Partners for 383 million euros, as part of its strategy to build an asset management arm to boost fees-based sales.
“Our transformation to a dual-strategy model is now well-grounded,” Wendel’s group chief executive officer Laurent Mignon said on Tuesday.
The group added that it would also invest US$1 billion to support the Monroe Capital’s growth.
The US asset investment firm will retain its brand and continue to operate autonomously with the group’s investment committee remaining independent, it noted.
It expects the transaction to be completed in the first half of 2025. REUTERS
