Man Group to take controlling stake in private credit manager Varagon

• The transaction is expected to close in the third quarter of 2023
• On completion, Varagon will become known as Man Varagon
• Since its inception in 2014, Varagon has invested more than $24.5 billion in middle market loans

Man Group has agreed to acquire a controlling stake in U.S. middle-market private credit manager Varagon Capital Partners.

At the closing of the deal, Man Group will pay $183 million in cash to sellers Aflac Inc, Corebridge Financial, Inc American International Group, Inc. and former members of Varagon’s management team.

Also, 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.

On the deal, Walter Owens, CEO at Varagon, said in a statement, “We are excited to be joining Man Group, a world-class investment firm with global distribution capabilities, a strong brand and infrastructure, and a like-minded, collaborative culture. Man Group’s deep experience building bespoke solutions for clients and best-in-class technology will help us to better serve our clients and further reinforce our position as a differentiated capital solutions provider in the core middle market.”

Wells Fargo Securities is acting as lead financial advisor and Willkie Farr & Gallagher LLP is acting as legal advisor to Man Group and/or its U.S. affiliates. Rothschild & Co. Inc. is acting as lead financial advisor and Davis Polk & Wardwell LLP is acting as legal advisor to Varagon.

The transaction is expected to close in the third quarter of 203. On completion, Varagon will become known as Man Varagon.

Based in London, Man Group is an investment management firm.

Varagon Capital Partners has approximately $11.8 billion in assets under management and $15.4 billion of capital commitments, as of December 2022. Since its inception in 2014, the firm has invested more than $24.5 billion in middle market loans.