Will Continue Investment in AHP Funds
Assured Guaranty Ltd. (NYSE:AGO) (together with its subsidiaries, Assured Guaranty) announced today that it has transferred the ownership of its entire equity interest in Assured Healthcare Partners LLC (AHP) to an entity owned and controlled by its Founder, Jim Pieri, who has acted as the Managing Partner and Chief Investment Officer of AHP since its formation as an independent healthcare-focused investment manager.
Earlier this month, Assured Guaranty combined its asset management business, Assured Investment Management LLC (AssuredIM), with Sound Point Capital Management, LP (Sound Point), and Sound Point became the sole alternative credit manager of the Assured Guaranty US insurance companies. Assured Guaranty received a 30% ownership interest in Sound Point’s combined business. The transaction with Sound Point did not include Assured Guaranty’s interest in AHP.
“The two transactions we recently completed – our business combination with Sound Point and AssuredIM and now the sale of our interest in AHP – constitute a continuation of our strategy to diversify our earnings stream through alternative investments,” said Dominic Frederico, CEO and President of Assured Guaranty. He continued, “Under the AHP transaction, Assured Guaranty will remain a strategic investor in certain AHP-managed funds while retaining its carried interest in existing AHP-managed funds and will receive other consideration.
We believe our alternative investment strategy, including with Sound Point- and AHP-managed funds, will enhance the performance of and diversify our investment portfolio.”
About Assured Guaranty Ltd.
Assured Guaranty Ltd. is a publicly traded, Bermuda-based holding company. Through its subsidiaries, Assured Guaranty provides credit enhancement products to the U.S. and non-U.S. public finance, infrastructure and structured finance markets. Assured Guaranty also participates in the asset management business through its ownership interest in Sound Point Capital Management, LP. More information on Assured Guaranty can be found at: AssuredGuaranty.com.
Cautionary Statement Regarding Forward-Looking Statements
Any forward-looking statements made in this press release reflect Assured Guaranty’s current views with respect to future events and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. These risks and uncertainties include, but are not limited to, the possibility that investments made by Assured Guaranty’s U.S. insurer subsidiaries for their investment portfolio, including in alternative credit strategies, do not result in the benefits anticipated or subject Assured Guaranty to reduced liquidity at a time it requires liquidity, or to unanticipated consequences; the impacts of the announcement and the completion of Assured Guaranty’s transactions with Sound Point and/or AHP on Assured Guaranty and its relationships with its shareholders, regulators, rating agencies, employees and the obligors it insures; the possibility that the transactions with Sound Point and/or AHP do not result in the benefits anticipated or subjects Assured Guaranty and/or its shareholders to negative consequences; difficulties executing Assured Guaranty’s business strategy; and other risks and uncertainties that have not been identified at this time, management’s response to these factors, and other risk factors identified in Assured Guaranty’s filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which are made as of July 21, 2023. Assured Guaranty undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.