Allied World Financial Services, a subsidiary of Allied World Assurance Company, has agreed to acquire a minority ownership interest in a privately held asset management firm Crescent Capital Group.
Further terms of the transaction have not been disclosed.
Based on terms of the deal, Crescent will manage $500m of Allied World’s investment portfolio to be deployed across a diversified set of credit strategies, over the next several years.
Allied World Financial Services president John Gauthier said, "We believe these deals will help Allied World manage our expenses, optimize our investments returns, and over time, provide earnings to AWH shareholders."
Crescent Capital co-founder and managing partner Mark Attanasio said the partnership with Allied World will boost its ability to serve the growing needs of investors looking for proven credit strategies that deliver differentiated risk-adjusted -returns.
Berkshire Capital Securities offered advice to Allied World on the transaction.
US-based Crescent Capital Group invests at all levels of the capital structure, mainly focusing on below investment grade credit through strategies that invest in senior bank loans, high yield debt, mezzanine debt, distressed debt and select private equity securities.
Allied World Assurance Company, through its subsidiaries, offers property, casualty and specialty insurance and reinsurance services.