Clearlake Capital acquires European direct lending specialist MV Credit

September 3, 2024 (Preqin News) – US-based alternatives manager Clearlake Capital has acquired MV Credit from Natixis, extending a trend of private capital managers expanding strategy and geographic capabilities through acquisition.

Clearlake Capital has raised 14 closed-end private credit funds since its inception in 2006, according to Preqin data, all targeting North America through a special situations strategy, as well as three open or semi-open-ended vehicles. The transaction will provide Clearlake access to the burgeoning European private credit market.

‘Clearlake has deployed over $40bn in debt and preferred equity investments since 2006, and with MV Credit’s expertise we will broaden our global direct lending capabilities to serve sponsors and other clients better while expanding product offerings for our investors,’ said José E. Feliciano, Co-Founder and Managing Partner at Clearlake.

European private debt AUM is forecast to more than double from $399.7bn in 2022 to $860.5bn in 2028, a CAGR of 13.6%, according to Preqin’s 2024 Global Report: Private Debt. Private market fund managers have stepped up acquisitions of private credit specialist firms to expand their capabilities in the in-demand asset class.

For example, Janus Henderson acquired a majority stake in direct lending and distressed debt manager Victory Park Capital last month. Arrow Global announced its purchase of Iberian non-performing loans specialist and real estate manager Amitra Capital from CPP Investments in May. Also, Paris-based Sienna Investment Managers purchased Italian private credit manager Ver Capital in April.

Founded in 2000, London-based MV Credit ‘invests in senior and subordinated debt across Europe, targeting non-cyclical, defensive industries’ and has closed 12 private credit funds since inception, investing €10.3bn ($11.4bn) in around 500 bespoke direct lending deals.

Clearlake acquired collateralized loan manager WhiteStar Asset Management from Pine Brook in 2020, expanding the firm’s public debt capabilities. In 2022, the firm co-led a consortium of investors to acquire a 50% stake in Chelsea F.C. for $4.5bn from Clearlake Capital Partners VII, a private equity fund, according to Preqin Pro.

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