Allied World & MatlinPatterson Partnership
Bermuda-based Allied World Assurance Company Holdings, AG plans to expand its asset management business through the creation of a strategic partnership between MatlinPatterson and Allied World Financial Services Company, Inc., an Allied World subsidiary.
Under the terms of the transaction, Allied World will become a minority owner of MatlinPatterson and will provide growth capital for the continued expansion of their asset management platform. Additionally, MatlinPatterson will manage $500 million of Allied World’s portfolio, over time, in existing and future liquid credit strategies.
Scott Carmilani, Chairman and CEO of Allied World, commented: “This partnership solidifies a long-standing association between Allied World and MatlinPatterson co-founder Mark Patterson, who previously served on our Board of Directors. His advice and financial acumen have helped Allied World mature into the company it is today.
“This agreement will allow for a collaborative approach to investing in liquid credit strategies and is designed to maximize flexibility while maintaining a multi-year capital commitment. Both firms believe that this approach is best suited for the current investment environment.”
Allied World recently launched its Financial Services Company under the direction of John Gauthier. Mr. Gauthier commented: “The goal of the Financial Services Company is to further the expertise of Allied World, while participating in the returns, as an owner, with trusted investment management and other business leaders.”
Mark Patterson added: “The strategic partnership with Allied World provides us with additional strength and flexibility in the current market. I know the Allied World leadership very well and believe the combination of our teams will result in a strong and lasting partnership.”
Allied World was advised by Berkshire Capital Securities LLC in this transaction.
