Assured Guaranty to Acquire BlueMountain

August 23, 2019

On August 7, 2019, Assured Guaranty Ltd. announced an agreement to acquire BlueMountain Capital Management, LLC.

Under the terms of the transaction, Assured Guaranty US Holdings Inc., a subsidiary of Assured Guaranty Ltd. (“Assured Guaranty”), will acquire all outstanding equity interests in BlueMountain Capital Management, LLC (“BlueMountain”) for a purchase price of approximately $160 million. At least $114.8 million of the purchase price will be payable in cash and the rest is payable either in cash, common shares, one-year promissory note or a combination of the foregoing, at Assured Guaranty’s election. Andrew Feldstein, BlueMountain’s co-founder, Chief Executive Officer and Chief Investment Officer will be joining Assured Guaranty as Chief Investment Officer and Head of Asset Management. Assured Guaranty will issue $22.5 million of its common shares to Mr. Feldstein as part of the purchase price. Furthermore, Assured Guaranty will contribute $60 million in working capital to BlueMountain at closing, another $30 million within a year of closing, and plans to allocate $500 million of its financial guaranty subsidiaries’ portfolios to BlueMountain’s funds, CLOs and separately managed accounts over a three-year period. The acquisition is expected to close in the fourth quarter of 2019, subject to customary closing conditions, including consents and regulatory approval. Further terms of the deal were not disclosed.

Assured Guaranty is a financial guaranty insurance company that specializes in municipal, public infrastructure and structured financings.

Blue Mountain is an alternative asset management firm that invests in public equity, fixed income, and alternative investments. It has $19.3 billion in assets under management. Barclays Capital Inc. served as financial advisor to BlueMountain.

To read the press release: please click here.


Categories

Hedge Fund M&A, Investment Manager M&A, Transactions