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Banner Ridge Partners and Eagle Point Credit Company are two of the firms interested in buying a portfolio of loan assets held by MGG, according to 9fin sources.

MGG is sounding out the market on a portfolio of performing and non-performing middle market loans. The portfolio is said to be valued at $250m but the size of the portfolio could end up being increased, sources said.

The company is working with Stifel to manage the sale, running a bids wanted in competition (or BWIC) process for the loans. Bloomberg first reported on some of the details of the potential transaction.

Assets likely to be included in the sale is a loan to Spark, a video dating app that owns a suite of dating services that include Christian Singles and Elite Singles. MGG focuses on sponsor and non-sponsor direct lending to companies in the $10m-$50m EBITDA range, according to its website.

Generali Investments acquired a majority stake in MGG earlier this year and will operate under the Conning & Company subsidiary of the Italy-headquartered asset manager. CEO & CIO Kevin Griffin will continue to remain in charge of MGG.

The sale, which is expected to close later this year, will see a 77% stake in MGG purchased for $320m with additional amounts to be paid if certain operating milestones are hit.

There has been much consternation in the market about whether the current volatility, and longer asset holding periods as a result, might generate a more robust secondary market in private credit, 9fin reported. Lenders have also moved assets to continuation vehicles as a way to fund payouts to investors.

MGG and Eagle Point declined to comment. Banner Ridge did not immediately respond to requests for comment.

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