Pryor Cashman client Sound Point Capital Management, LP, entered into an agreement today to acquire Assured Investment Management LLC and certain of its related asset management entities, under the investment umbrella of Assured Guaranty Ltd. (together with its affiliates, "Assured Guaranty"). Assured Guaranty will become a significant equity holder and investor of Sound Point and some of Assured Guaranty's U.S. insurance subsidiaries will commit to invest $1 billion over time in Sound Point's managed investment vehicles and separately managed accounts. Sound Point will become the sole alternative credit manager for the Assured Guaranty U.S. insurance subsidiaries.
According to the release, Stephen Ketchum, the founder and Managing Partner of Sound Point, noted:
This is a watershed event in Sound Point's growth story, and it positions us for continued success in a business where scale has become increasingly important. It's our largest transaction to date, and we're extremely proud to be receiving a one-billion-dollar investment commitment over time from Assured Guaranty. We're thrilled to be expanding our diversified platform through a powerful new partnership that will create immediate impact.
The Pryor Cashman team was led by Michael Weinsier, Cory Lamonica, Bert Fry, Ethan Lankri, and Jonathan Shepard, with significant assistance from Bob Friedman (Corporate); Mike Dunworth and Taylor Weinstein (Tax); Shane Stroud and Matt Young (Employee Benefits/ERISA); Jeff Johnson and Teresa Lee (IP); Josh Zuckerberg and LaKeisha Caton (Labor + Employment); and Corporate Associates Jason Pachter, Jens Thomsen, Marissa Higdon, and Bianka Valbrun.
The deal anticipates closing to be completed in the beginning of Q3 2023. As part of the deal, a number of employees from Assured-IM anticipate to be joining Sound Point in both New York and London.
About Pryor Cashman's Investment Management Practice
With clients ranging from emerging managers to leading global investment firms managing billions in assets, our investment management attorneys advise clients in all aspects of their asset management businesses. Pryor Cashman attorneys help investment managers in a number of ways, ranging from mergers and acquisitions, joint ventures, and strategic partnerships to launching new private investment funds and negotiating separately managed accounts. We advise RIAs and CTAs on their compliance obligations and guide clients who look to form new investment advisers, bring on senior executives, or spin out from or join established advisory firms. And we extend the reach of general counsels and internal operations teams by bringing their most complex projects to successful completion. In addition, our investment management team is a trusted resource for investors when they evaluate their investments into private investment funds.
About Sound Point Capital Management, LP
Sound Point is an alternative asset management firm founded in 2008 with particular expertise in credit strategies. Based in New York, with offices in London, Florida and Connecticut, the firm manages money on behalf of institutional investors including top-tier pensions, foundations, insurance companies, wealth management firms and family offices. Sound Point's strategies span the spectrum of liquid and illiquid credit alternatives and include funds and managed accounts focused on leveraged loans, special situations, distressed debt, structured credit, direct lending and commercial real estate. Sound Point currently manages approximately $32 billion of assets. Five principals of Stone Point Capital LLC, as well as Dyal Capital Partners, a division of Blue Owl Capital Inc. [NYSE: OWL], are also strategic investors in our business. For more information, please visit Sound Point's website at www.soundpointcap.com.
About Assured Guaranty Ltd.
Assured Guaranty Ltd. is a publicly traded [NYSE: AGO], Bermuda-based holding company. Through its subsidiaries, Assured Guaranty provides credit enhancement products to the U.S. and international public finance, infrastructure and structured finance markets and also provides asset management services. More information on Assured Guaranty Ltd. and its subsidiaries can be found at AssuredGuaranty.com
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