July 6 (Reuters) - London-listed hedge fund Man Group said on Thursday it has agreed to buy a controlling stake in U.S. middle market private credit manager Varagon Capital Partners, building on a recent acquisition.
Man Group said it would pay $183 million in cash to selling interest holders, which include Aflac Inc, Corebridge Financial Inc, American International Group Inc and former members of Varagon's management.
The hedge fund, which manages more than $144 billion in assets, said the acquisition reflected a long-term strategy to move into new markets, citing increased client interest for credit strategies.
"We see a significant growth opportunity in direct lending, particularly against the backdrop of regional banking difficulties in the U.S.," Eric Burl, head of discretionary at Man Group, said in a statement.
"This transaction enhances our ability to provide deep, fundamental credit expertise through a cycle, underpinned by risk management of the highest quality."
The move is the second acquisition since Man Group announced in May that longstanding CEO Luke Ellis would be succeeded by current president Robyn Grew by the end of the year.
Man Group shares were up 0.4% in early London trade, outperforming the broader market which was down 0.9%. (Reporting by Yadarisa Shabong in Bengaluru and Nelll Mackenzie in London; Writing by Dhara Ranasinghe; editing by Rashmi Aich and Jason Neely)
Man (EMG)
Aflac (AFL.US)
Corebridge Financial (CRBG.US)
American International Group (AIG.US)