By Michael Susin
Monroe Capital shares rose Tuesday after the company entered into an agreement to sell a majority stake to French investment company Wendel Group.
Shares in the premarket trading were up more than 15%. On a 52-week basis, the stock is nearly 17% higher.
Monroe said that it will receive $1 billion for seed capital and general partner commitments for its investment strategies. In exchange, Wendel will receive a 75% stake in Monroe.
The company said the agreement will support its growth initiatives and expand its private credit platform in the U.S., while further developing its third-party asset management platform.
"We have achieved an important milestone in further securing the stability and growth of Monroe Capital for the next several decades," said Monroe President Zia Uddin.
The company said it will continue to operate independently, and its management will retain a 25% holding in the business.
Furthermore, both parties are in talks with AXA IM Prime for an investment of up to $50 million as a minority shareholder.
Write to Michael Susin at michael.susin@wsj.com
(END) Dow Jones Newswires
October 22, 2024 06:18 ET (10:18 GMT)
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