Mitsubishi UFJ Financial Group (MUFG) launched 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. Matt Maley will lead the team as head of direct lending.

Maley joined MUFG in 2018 to run sponsor coverage. In his new role, Maley will report to Jon Lindenberg, head of global corporate and investment banking in the Americas for MUFG.

“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,” Maley said. “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.

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.

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, a wood trim board supplier.
• 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, a distributor of automotive glass to the North American aftermarket.
• MUFG was part of a direct lending syndicate that 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, increased its commitment to support organic growth.