Private equity firm Clearlake Capital Group has agreed to acquire MV Credit, a pan-European private credit specialist, from Natixis Investment Managers. Financial terms of the proposed deal were not disclosed.

The acquisition is expected to close in the fourth quarter of 2024, subject to customary closing conditions.

Founded in 2000 and headquartered in London, MV Credit is an independently managed European private credit specialist. With US$5.1 billion in assets under management (AUM), MV Credit provides tailored fund solutions to investors across senior direct lending, subordinated direct lending, hybrid, and collateralized loan obligation (CLO) strategies.

The firm has deployed more than US$11 billion since its inception, leading over 500 bespoke transactions of up to US$500 million with sponsors such as EQT, Nordic Capital, Cinven and Bain Capital. MV Credit is differentiated by its experienced senior management team, whose members each have more than two decades of investment experience across multiple credit cycles.

Upon closing, Clearlake’s credit business will have over US$28 billion AUM, as well as firmwide AUM of over US$90 billion. The acquisition will boost Clearlake’s team to more than 230 professionals with offices in Santa Monica, Dallas, Dublin, London, Singapore, Abu Dhabi, Paris and Luxembourg.

“Credit has been in Clearlake’s DNA since our inception and is core to our firm strategy. MV Credit’s exceptional track record and deep expertise in private credit align perfectly with our existing credit business and strengthen our continuing presence in Europe,” says José E. Feliciano, Clearlake’s co-founder and managing partner.

“Clearlake has deployed over US$40 billion in debt and preferred equity investments since 2006, and with MV Credit’s expertise, we will broaden our global direct lending capabilities to better serve sponsors and other clients while expanding product offerings for our investors.”

With the acquisition, Clearlake’s credit business will attain significant scale, with credit AUM growing from US$6 billion in 2020 to over US$28 billion, says Behdad Eghbali, co-Founder and managing partner at Clearlake.

“Clearlake and MV Credit share a similar credit investment philosophy and culture, and we believe the combination will be a winning proposition for the market,” says MV Credit chief executive officer Frédéric Nadal. “The demand for private credit keeps growing, and the partnership with Clearlake allows us to further address client needs around the world. Our firms share a culture of teamwork, integrity and commitment to excellence. We look forward to being part of the Clearlake family.”

Kirkland & Ellis and Milbank are serving as legal advisers to Clearlake, while Fenchurch Advisory is acting as financial adviser and Dentons is acting as legal adviser to Natixis IM on the transaction. DLA Piper is serving as legal adviser to the MV Credit.