McGill Lands $400 Million Private Credit Loan to Back EQT’s $2 Billion Buyout

McGill and Partners has secured a $400 million loan from a club of direct lenders including Morgan Stanley, Permira and Bridgepoint to support EQT’s $2 billion acquisition of a majority stake in the London-based specialty insurance broker.

The financing adds a private credit component to one of September’s larger European sponsor-backed transactions and comes roughly a year after the same three lenders provided McGill with $300 million of credit facilities. The new loan also illustrates direct lenders’ continued role in acquisition financing even as syndicated loan and high-yield markets compete aggressively for larger European buyouts.

Direct lenders return for EQT transaction

Morgan Stanley, Permira and Bridgepoint are existing lenders to McGill and are participating in the new $400 million financing, PitchBook reported. Financial terms including pricing, leverage and maturity were not disclosed. EQT and Permira declined to comment to PitchBook.

The financing follows EQT’s $2 billion acquisition of McGill and Partners, announced Sept. 4. EQT X agreed to acquire Warburg Pincus’ majority holding, while founder and Chief Executive Steve McGill, Chairman John Lloyd, management and employees will reinvest and retain meaningful ownership positions.

The transaction is expected to close in the first half of 2027, subject to customary conditions and approvals.

EQT’s official McGill and Partners transaction announcement said the broker has generated more than $250 million of revenue and employs more than 600 people across seven countries. The company serves more than 1,000 insurance and reinsurance clients.

Market sources cited by PitchBook said McGill was marketed on EBITDA of about $100 million. Against the $2 billion transaction value, that implies a valuation of roughly 20 times EBITDA, although EQT has not publicly confirmed the earnings figure.

Financing rises from $300 million to $400 million

The lender relationship predates EQT’s acquisition. In September 2025, McGill secured $300 million of new credit facilities from Morgan Stanley, Permira and Bridgepoint, refinancing existing debt while also funding a dividend recapitalization.

The McGill and Partners refinancing announcement said that package comprised a senior facility, revolving credit facility and acquisition facility intended to support investment in talent and technology, including artificial intelligence. McGill described leverage at the time as conservative but did not disclose a leverage multiple.

The latest $400 million package is about one-third larger than the 2025 facilities, though the two financings are not directly comparable because detailed terms of the acquisition financing have not been disclosed.

The repeat participation of the same lenders is notable. Direct lenders with an existing relationship can enter an acquisition with prior knowledge of a borrower’s performance and capital structure, potentially reducing execution risk for a sponsor compared with assembling an entirely new creditor group.

Private credit competes for European buyout financing

McGill’s financing arrives during a strong but increasingly competitive year for European direct lending.

PE NEWSWIRE previously reported that European private credit reached a record €63.16 billion in the first half of 2026, despite second-quarter volume falling as syndicated loans and high-yield bonds captured more large transactions.

Direct lenders completed 296 European deals worth €28.4 billion during the second quarter, compared with €38.04 billion across 367 transactions a year earlier. At the same time, combined leveraged loan and high-yield issuance reached about €128.3 billion in the quarter.

That competition matters for transactions such as McGill. Larger sponsor-backed borrowers can often choose between private lenders and broadly syndicated markets, putting pressure on direct lenders to compete through execution certainty, flexible documentation and customized financing structures rather than price alone.

The $400 million McGill loan shows that direct lending clubs remain capable of financing substantial European acquisitions without requiring sponsors to rely entirely on bank-underwritten syndicated debt.

Insurance brokerage supports lender case

McGill’s business profile may also help explain lender appetite. Founded in 2019 with Warburg Pincus backing, the company specializes in insurance and reinsurance brokerage for complex risks, including marine, cargo, aviation and aerospace. Unlike an insurer, a broker generally earns commissions and fees from arranging coverage rather than assuming the underlying insurance risk on its own balance sheet.

McGill has also grown rapidly. EQT said annual revenue now exceeds $250 million, while the company has expanded to more than 600 employees since its launch seven years ago.

EQT plans to support further organic expansion through specialist recruitment, technology and data investment and digital products. The private equity manager had €341 billion of total assets under management as of June 30, including €186 billion of fee-generating assets.

For private credit investors, the financing provides exposure to a sponsor-backed company with recurring brokerage revenue and an established relationship with its lender group. The undisclosed pricing and leverage, however, make it impossible to assess the loan’s risk-adjusted economics from publicly available information.

The transaction nevertheless provides another indication that private credit remains embedded in European sponsor finance. Even as public leveraged-finance markets reclaim some larger transactions, established lender clubs can retain deals where their existing borrower relationships and ability to provide committed capital give sponsors an alternative to syndicated execution.