Financial conglomerate Man Group plans to acquire U.S. private credit manager Bardin Hill.
Man Group, a London-based alternative asset manager and the world's largest listed hedge fund firm, has agreed to acquire US private credit manager Bardin Hill for an undisclosed sum. The deal, which is part of Man Group's strategic expansion in the private credit market, is expected to bolster its credit platform and add approximately $3 billion in assets under management (AUM) to its existing $40 billion within the credit sector.
Bardin Hill, with its focus on distressed and special situations, non-sponsor backed direct lending, and broadly syndicated loan CLOs in the US, brings a unique set of investment capabilities to Man Group. The acquisition is set to enhance Man Group's credit offerings, which currently include direct lending, credit risk sharing, and residential real estate lending strategies.
Jason Dillow, chief executive of Bardin Hill, expressed his excitement about joining Man Group's US private credit platform, while Steven Desmyter, president of Man Group, believes the acquisition adds new capabilities to their growing credit platform.
The acquisition talks between Man Group and Bardin Hill were first reported in May. Goldman Sachs is acting as lead financial adviser to Man Group, while Houlihan Lokey is performing the same role for Bardin Hill. Willkie Farr & Gallagher is acting as legal adviser to Man Group, and HSF Kramer and Schulte Roth & Zabel are acting as legal advisers to Bardin Hill.
With the integration of Bardin Hill into its operations, Man Group aims to solidify its position as a major player in the global credit market, offering a broader range of services to its clients. The company's extensive distribution network, sophisticated institutional platform, and cutting-edge technology are expected to help Bardin Hill strengthen its opportunistic and performing credit strategies.
Moreover, Man Group's global distribution network will be used to increase Bardin Hill's access to new investors. This strategic move is likely to enhance Man Group's diversification and market presence, as it continues to expand its presence in the US credit market via acquisitions.
In 2023, Man Group acquired US specialist middle-market direct lender Varagon for $183 million, demonstrating its commitment to growth in the private credit sector. The acquisition of Bardin Hill further bolsters Man Group's investment capabilities with the addition of opportunistic and performing credit strategies.
Jason Dillow, along with his nine partners, will continue to lead the Bardin Hill business following the acquisition. The investment committee, investment team, and investment processes of Bardin Hill will remain unchanged.
The acquisition is a significant step forward in Man Group's strategic objectives to expand and strengthen its financial services, particularly in the private credit sector. As the deal terms remain undisclosed, further details are expected to be released in due course.
Investing in the acquisition of Bardin Hill, a US private credit manager, will extend Man Group's business activities in the private credit market, promising an addition of approximately $3 billion in assets under management (AUM) within the credit sector. The unique investment capabilities brought by Bardin Hill, focusing on distressed and special situations, non-sponsor backed direct lending, and broadly syndicated loan CLOs in the US, will enrich Man Group's credit offerings in finance.
