Assured Guaranty Ltd. subsidiary Assured Guaranty US Holdings Inc. agreed to acquire all of the outstanding interests in alternative asset management firm BlueMountain Capital Management LLC and its associated entities for about $160 million.
Under the deal, Affiliated Managers Group Inc. will sell its equity interests in BlueMountain Capital to the Assured Guaranty unit. Affiliated Managers, which is the ultimate parent of BlueMountain Capital, will receive $91 million in cash when the deal closes. The transaction is expected to be immediately accretive to Affiliated Managers' earnings.
Assured Guaranty US intends to finance the acquisition with loans from its financial guaranty units, Assured Guaranty Municipal Corp., Municipal Assurance Corp. and Assured Guaranty Corp.
As part of the transaction, Assured Guaranty will contribute cash to BlueMountain to provide for its working capital needs and repositioning. Additionally, Andrew Feldstein plans to join Assured Guaranty as chief investment officer and head of asset management, in addition to his current roles as CEO and chief investment officer of BlueMountain Capital.
The deal is expected to close in the fourth quarter.
Goldman Sachs & Co. LLC and Greensledge Capital Markets LLC were financial advisers, and Mayer Brown LLP was legal adviser to Assured Guaranty. Barclays Capital Inc. was a financial adviser, and Purrington Moody Weil LLP was legal adviser to BlueMountain Capital.