MUFG launches Direct Lending group to support private equity clients
Dedicated team brings together origination, underwriting, portfolio management, borrower relationship management, and syndication to provide financing for middle-market sponsor transactions
New York, August 11, 2022 - Mitsubishi UFJ Financial Group (MUFG) announced today the formation of a Direct Lending group that will focus on providing loans to the bank’s private equity sponsor clients to support their portfolio company LBO and recapitalization transactions.
The team will be led by Matt Maley, who joined MUFG in 2018 to run sponsor coverage. In his new role as Head of Direct Lending, Maley will report to Jon Lindenberg, Head of Global Corporate and Investment Banking (GCIB) in the Americas.
“We started a direct lending initiative in 2019 when our sponsor clients approached us to finance their middle market LBOs outside of the broadly syndicated institutional market,” said Maley. “Having completed more than 50 direct loan transactions to date, this offering has become an important tool in our toolbox, helping us grow our U.S. sponsor business to $300 million in revenue.”
“Setting up a dedicated group to target the direct lending market with an end-to-end solution will enable us to meet the needs of our clients and take advantage of MUFG’s $3 trillion balance sheet, one of the largest in the world,” Lindenberg said.
MUFG approaches the direct lending market as a solutions provider to private equity sponsor clients and their portfolio companies, tapping into the broad MUFG platform and set of capabilities. Recent examples include:
- MUFG provided a 100% underwritten direct loan commitment to support Brightstar’s acquisition of WindsorOne, the industry leader in wood trim boards.
- MUFG provided a direct loan to Authority Brands, an Apax portfolio company, and within 18 months helped to refinance that loan with a whole business securitization.
- MUFG provided a direct loan to support One Equity Partner’s acquisition of Pittsburgh Glass Works, the leading distributor of automotive glass to the North American aftermarket.
- MUFG was part of a direct lending syndicate which helped Warburg Pincus acquire Sweeping Corporation of America, and subsequently advised on the sale of CleanStreet to Sweeping Corporation of America through the bank’s M&A division, Intrepid.
- MUFG provided a direct loan to Offen Petroleum, a Court Square portfolio company, and within 12 months significantly increased its commitment to support organic growth.
The new unit will be responsible for all aspects of direct lending, including sponsor coverage and origination, underwriting and portfolio management, borrower relationship management, and loan syndication.
About Mitsubishi UFJ Financial Group, Inc.’s U.S. Operations including MUFG Americas Holdings Corporation
The U.S. operations of Mitsubishi UFJ Financial Group, Inc. (MUFG), one of the world’s leading financial groups, has total assets of $332.4 billion at March 31, 2022. As part of that total, MUFG Americas Holdings Corporation (MUAH), a financial holding company, bank holding company, and intermediate holding company, has total assets of $159.2 billion at March 31, 2022. MUAH’s main subsidiaries are MUFG Union Bank, N.A. and MUFG Securities Americas Inc. MUFG Union Bank, N.A. provides a wide range of financial services to consumers, small businesses, middle-market companies, and major corporations. As of March 31, 2022, MUFG Union Bank, N.A. operated 297 branches, consisting primarily of retail banking branches in the West Coast states. MUFG Securities Americas Inc. is a registered securities broker-dealer which engages in capital markets origination transactions, domestic and foreign debt and equities securities transactions, private placements, collateralized financings, and securities borrowing and lending transactions. MUAH is owned by MUFG Bank, Ltd. and Mitsubishi UFJ Financial Group, Inc. MUFG Bank, Ltd., a wholly owned subsidiary of Mitsubishi UFJ Financial Group, Inc., has offices in Argentina, Brazil, Chile, Colombia, Peru, Mexico, and Canada. Visit www.mufgamericas.com for more information.
Mitsubishi UFJ Financial Group, Inc. (MUFG) is one of the world’s leading financial groups. Headquartered in Tokyo and with over 360 years of history, MUFG has a global network with approximately 2,500 locations in more than 50 countries. The Group has about 170,000 employees and offers services including commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing. The Group aims to “be the world’s most trusted financial group” through close collaboration among our operating companies and flexibly respond to all of the financial needs of our customers, serving society, and fostering shared and sustainable growth for a better world. MUFG’s shares trade on the Tokyo, Nagoya, and New York stock exchanges. For more information, visit https://www.mufg.jp/english.