French investment firm Wendel has announced plans to acquire a 75% stake in U.S.-based private lender Monroe Capital for $1.13 billion. The move marks Wendel’s entry into the fast-growing private credit sector as the firm aims to broaden its presence in the U.S. market.
In addition to acquiring a majority stake, Wendel will provide an additional $1 billion to support Monroe’s growth and help launch new funds. The deal, which also includes an earn-out mechanism of up to $255 million, is expected to close in the first half of 2025.
Founded in 2004 by Theodore Koenig, Monroe Capital specializes in providing private credit to borrowers across the U.S. and Canada. The company currently manages about $19.5 billion in assets and operates out of 11 offices, including locations in Abu Dhabi and Seoul.
“This is a very significant and transformative deal for Wendel,” said Laurent Mignon, CEO of Wendel, during a press conference. He added that expanding in the U.S. is strategic, given the country’s more dynamic economy compared to Europe’s over the long term.
The acquisition is part of Wendel’s broader strategic shift, which was announced last year. Historically, Wendel invested from its own balance sheet but is now building an asset management business that oversees third-party capital. Earlier this year, Wendel acquired a majority stake in mid-market buyout firm IK Partners as part of this strategy.
Mignon highlighted Monroe as a strong foundation for Wendel’s expansion into Europe’s private credit market, which is less developed than in the U.S. While the immediate focus will be on integrating Monroe, Wendel will continue exploring opportunities in infrastructure and the secondary private equity market in Europe and the U.S.
Shares of Wendel rose as much as 1.7% in Paris trading on Tuesday, giving the company a market value of approximately €4.2 billion ($4.5 billion).
Strategic Partnerships and Industry Competition
As part of the deal, Wendel will acquire 50% of Monroe from its management and 25% from Bonaccord Capital Partners. AXA IM Prime, a subsidiary of AXA Investment Managers, may join as a minority shareholder. Wendel has a path to buy the remaining shares over three instalments between 2028 and 2032.
UBS Group AG and Fenchurch Advisory advised Wendel on the acquisition, while Monroe Capital was advised by Goldman Sachs.
Private credit has become a lucrative and rapidly growing sector, attracting major players like Apollo Global Management, Blackstone, Ares Management, and Blue Owl Capital. The sector has also seen a rise in mergers and acquisitions, with firms seeking to expand their reach.
For example, last year, TPG Inc. acquired credit firm Angelo Gordon for $2.7 billion. BlackRock Inc. recently agreed to buy Global Infrastructure Partners for about $12.5 billion, and Blue Owl has been active in acquiring credit managers like Atalaya Capital Management. Bloomberg News has reported that BlackRock is exploring a purchase of HPS Investment Partners.
Apollo Global Management, meanwhile, has teamed up with Citigroup Inc. on $25 billion worth of private credit deals over the next five years. Lazard Inc. is also considering opportunities in the private credit space.
