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December 24, 2020

Barings BDC concludes merger with MVC Capital

By Verdict Staff

Barings BDC has completed its previously announced merger with New York-based MVC Capital creating a company with over $1.5bn of assets under management on a pro forma basis.

The combined entity will remain externally managed by Barings.

Under the agreement, MVC Capital shareholders will receive 0.9790836 of a share of Barings BDC common stock in exchange for each share held.

They will also receive around $0.39492 of cash per share as transaction support provided by Barings.

Around 17.3 million Barings BDC shares are expected to be issued to MVC Capital shareholders.

Following the transaction, MVC Capital shareholders will own a 26.6% interest while Barings BDC shareholders will have a 73.4% holding in the combined company.

In connection with the merger, Barings BDC has appointed an additional member to its seven-member board.

The company has also named former MVC Capital director Robert Knapp as an independent member of the board of directors as well as each standing committee of the board.

The merger was announced by the companies in August this year.

At the time, Barings BDC CEO Eric Lloyd said: “The increasing benefits of alignment, scale, diversification, and investment optionality are likely to drive improved shareholder returns over the long-term and in this period of market dislocation.

“We believe this transaction materially enhances Baring BDC’s platform scale while also providing earnings accretion and portfolio diversification, while continuing our philosophy of strong shareholder alignment.”

Other recent mergers

Recently, Florida-based wealth management firm Flaharty Asset Management bolstered its presence in its home market by combining operations with AWA Investment Advisors.

Last week, Australian financial advisory firm Apt Wealth Partners expanded its reach in the country by merging with peer Unified Financial Services.

Earlier this month, Asteria Investment Managers, the impact investing affiliate of REYL & Cie, forged a strategic alliance with Swiss impact private asset manager Obviam.

Last month, Stanhope Capital Group and FWM Holdings agreed to combine their businesses in a deal that would result in the formation of a $24.2bn wealth manager.

In June this year, Orion Advisor Solutions combined operations with turnkey asset management platform Brinker Capital.

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