Wendel Secures Controlling Stake in Monroe Capital
Deal News | Mar 31, 2025 | Globenewswire
Wendel, a prominent European investment firm, has announced the completion of its acquisition of a 75% controlling stake in Monroe Capital LLC. The acquisition, carried out with the support of AXA IM Prime, is a significant component of Wendel's strategic initiative to expand its asset management platform, which now oversees close to 34 billion euros in private assets. The deal involves a capital outlay of approximately $1.13 billion from Wendel, acquiring 72% of Monroe Capital's shares and securing rights to about 20% of the carried interest on Monroe's past and future funds. Additionally, Wendel has pledged up to $200 million in general partner commitments to bolster Monroe's growth trajectory. Furthermore, an earn-out mechanism, contingent on specific performance thresholds, is included in the transaction, allowing for an additional payment of up to $255 million in 2028 if met. Wendel and AXA IM Prime's joint venture marks a critical inflection point in both companies' respective strategies, with Monroe being a leading US-based firm specializing in private credit markets. Under this new partnership, significant synergies and a more diverse asset base are expected, with implications on shareholder returns and market positioning.
Sectors
- Private Equity
- Asset Management
- Private Credit
Geography
- United States – Monroe Capital is based in the United States, a central location to this transaction and strategic focus due to their significant market presence.
- Europe – Wendel is a leading European investment firm, headquartered in France, and its strategic activities are based in European markets.
Industry
- Private Equity – The article discusses Wendel's acquisition of Monroe Capital, highlighting its strategy within private asset management, a core area of private equity.
- Asset Management – The acquisition enhances Wendel's asset management platform, increasing its assets under management and expected financial returns.
- Private Credit – Monroe Capital specializes in private credit solutions, a key focus of Wendel’s strategic expansion in non-traditional credit markets.
Financials
- $1.13 billion – Amount Wendel invested to acquire 72% of Monroe Capital's shares.
- $200 million – GP commitment invested by Wendel to support Monroe Capital's growth.
- $255 million – Maximum earn-out payable in 2028 contingent on performance thresholds.
- 34 billion euros – Approximate assets under management by Wendel’s asset management platform post-acquisition.
- c. 160 million euros – Expected Fee Related Earnings by 2025 from Wendel's asset management activities.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Wendel | Bidding Company | Company | A leading European investment firm making a strategic acquisition in the asset management sector. |
| Monroe Capital LLC | Target Company | Company | A US-based asset management firm specializing in private credit solutions. |
| AXA IM Prime | Other Company - Co-Investor | Company | AXA IM's platform for private market solutions, co-investing alongside Wendel in Monroe Capital. |
| Bonaccord Capital Partners | Selling Company | Company | Owned a minority interest in Monroe Capital, part of the selling entity. |
| UBS | Financial Advisor to Wendel | Company | |
| Kirkland & Ellis LLP | Legal Advisor to Wendel | Company | |
| Fenchurch Advisory | Advisor to Wendel | Company | |
| Goldman Sachs & Co. LLC | Financial Advisor to Monroe Capital | Company | |
| Fried, Frank, Harris, Shriver & Jacobson LLP | Legal Advisor to Monroe Capital | Company | |
| Ted Koenig | CEO of Monroe Capital | Person | Founder of Monroe Capital, playing a pivotal role in the company's operations and strategic growth. |
| Laurent Mignon | CEO of Wendel Group | Person | Leading Wendel's expansion into asset management and strategic investments. |