Affiliated Managers Group, Inc. (NYSE: AMG) announced that it has entered into an agreement with a subsidiary of Assured Guaranty Ltd. (NYSE: AGO) and BlueMountain Capital Management, LLC, under which AGO will purchase 100% of the outstanding equity interests in BlueMountain and its associated entities. AMG will receive $91 million in cash at closing, subject to certain limited adjustments. As part of the transaction, AGO will contribute cash to BlueMountain to fund its working capital needs and the repositioning of the firm. The transaction is expected to close by year-end 2019, subject to the satisfaction of customary closing conditions, and will be immediately accretive to AMG’s earnings.
Jay C. Horgen, President and Chief Executive Officer of AMG, said:
“We are pleased to have had a good partnership with BlueMountain over many years, and also that we worked closely with our long-term partners at BlueMountain to achieve an outcome that is in the best interests of BlueMountain’s clients and employees and AMG’s shareholders. AMG’s strategy remains consistent: to generate long-term value by investing in leading independent active investment managers, through a proven partnership approach, and allocating resources across AMG’s unique opportunity set to the areas of highest growth and return. We offer unique access to boutique investment capabilities at scale, while preserving and enhancing the elements critical to individual Affiliate success – including alignment of interests, investment independence, and operational autonomy. As BlueMountain becomes part of a larger consolidated organization, we wish Andrew Feldstein and his management partners the best going forward.”