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Clearlake Capital has entered into an agreement to acquire an investment unit from Natixis, expanding its presence in the private credit industry. This move comes as asset managers vie for a foothold in the rapidly growing private credit sector.
Clearlake, a co-owner of the English Premier League club Chelsea FC, has agreed to purchase European-focused credit investment firm MV Credit for several hundred million dollars, according to sources familiar with the deal.
With this acquisition, Clearlake’s assets under management will exceed $90 billion and its credit business will grow by approximately $5 billion.
The increasing interest in the $1.7 trillion private credit industry has led both private equity firms and traditional asset managers to pursue opportunities in this space through acquisitions and expansion.
The acquisition of MV Credit will enable Clearlake to establish a presence in the $800 billion direct lending market, where asset managers directly lend to companies without involving banks.
Furthermore, it will enhance Clearlake’s public credit investment team by incorporating MV’s collateralized loan obligation business.
Clearlake, one of the fastest-growing private equity firms, has significantly expanded its investments in recent years and is now focusing on credit offerings. The firm has successfully navigated previous downturns by investing in distressed debt.
Jose E. Feliciano, a co-founder of Clearlake, stated that the expansion into credit has made the firm better investors. He emphasized the importance of credit acquisitions in diversifying their offerings and expanding their investor base.
Clearlake plans to further develop MV’s direct lending business, potentially introducing new funds or permanent capital vehicles and expanding its operations to the US.
The acquisition will be funded through Clearlake’s existing cash reserves and its revolving credit facility. The firm had previously secured capital by selling a stake to Dyal Capital and Goldman Sachs’ Petershill Partners private equity unit.
Consolidation in the asset management industry is on the rise, with firms seeking to strengthen their presence in infrastructure and credit segments to create stable fee-generating businesses.
This move by Clearlake is part of a broader trend of acquisitions in the asset management industry, with significant deals already completed this year.
