Genstar Lines Up $2.85B Debt Financing From Morgan Stanley for First Eagle $4B Buyout 

First Eagle’s buyout by Genstar Capital is being financed by a $2.85 billion financing commitment from Morgan Stanley, consisting of a $2.05 billion term loan, $350 million delayed-draw facility and $450 million revolving credit facility, according to sources.

First Eagle’s deal is valued at more than $4 billion, Octus, formerly Reorg, reported this week. As part of the transaction, which was announced yesterday, March 3, Genstar will buy a majority stake in First Eagle from Blackstone and Corsair Capital. The deal is expected to close in the second half of 2025.

Early views on the deal were mixed. One source noted that leverage, at between 4.5x and 5x on LTM EBITDA excluding the delayed-draw facility, was a bit too high, while another praised Genstar’s strong reputation in the market.

At last week’s JPMorgan leveraged finance conference, investors and bankers noted the rise to prominence of financial services, as it sits as the second-largest industry in the high-yield and leveraged loan sector, rising to about 10% of the market from 6% a year ago.

New York-based First Eagle had about $144 billion in assets under management as of the end of December 2024. First Eagle’s offerings include equity, fixed income, alternative credit and multi-asset strategies.

Blackstone and Corsair made a majority investment in First Eagle in 2015 in a transaction that gave First Eagle a total enterprise value of about $4 billion. The deal marked an exit by TA Associates.

Under Blackstone and Corsair’s ownership, First Eagle bought alternative credit managers THL Credit Advisors LLC in a deal that closed in 2020 and Napier Park Global Capital in 2022.

Simpson Thacher and Davis Polk are acting as legal counsel and Morgan Stanley is acting as lead financial advisor to First Eagle; BofA Securities, UBS and Jefferies are also acting as financial advisors to First Eagle.

Willkie Farr & Gallagher LLP is acting as legal counsel and Moelis & Co. LLC as lead financial advisor to Genstar, with Goldman Sachs, Barclays and BMO also providing financial advisory support.

Morgan Stanley, First Eagle, Genstar, Blackstone and Corsair did not respond to requests for comment.