Prosperity Life Insurance Group Announces Sale to Investor Group | Business Wire

NEW YORK–()–Prosperity Life Insurance Group, LLC (“Prosperity” or the “Company”),

today announced that its current majority shareholders, including funds

managed by Reservoir Capital Group, LLC (“Reservoir”) and Black Diamond

Capital Partners (“Black Diamond”) have entered into a definitive

agreement to sell 100% of their ownership interests in Prosperity to an

investment partnership funded by affiliated entities of Elliott

Management Corporation (collectively, “Elliott”); operating principals

of Wand Partners, Inc. (“Wand”), an insurance-focused private investment

firm; and Anurag Chandra, current CEO of Prosperity. The transaction is

expected to be completed in the third quarter of 2018, subject to

customary regulatory approvals.


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Prosperity, through its member companies, Shenandoah Life Insurance

Company (“Shenandoah”), SBLI USA Life Insurance Company, Inc. (“SBLI

USA”) and S.USA Life Insurance Company, Inc. (“S.USA”), is a leading

provider of protection, supplemental and asset accumulation products

distributed through banks, independent marketing organizations, managing

general agencies, career and worksite channels. Prosperity’s insurance

operating subsidiaries have an A- (Excellent) financial strength rating

by A.M. Best.

“This transaction is a testament to the exceptional strategic and

financial transformation that the Company has achieved under the

leadership of Prosperity’s Board of Directors and management team”, said

Anurag Chandra, Chief Executive Officer of Prosperity. “As the Company

seeks to build on its strong momentum and further accelerate the

implementation of its organic and inorganic growth strategy, this

ownership transition to another experienced investor group with a

long-term investment horizon and significant financial resources will

serve as a key source of competitive advantage.”

Matt Popoli, Chairman of Prosperity and Senior Managing Director of

Reservoir, said, “As the founding investor and the sponsor of

Prosperity, it has been exciting to see the Company achieve numerous

significant milestones since its inception in 2009, when Reservoir and

Black Diamond partnered to form the business and build it through the

sponsored demutualizations of Shenandoah in 2012 and SBLI USA in 2014. I

believe that Elliott and Wand will be great partners to continue the

Company’s positive momentum.”

“We are very pleased to have reached agreement to acquire Prosperity and

look forward to backing this entrepreneurial and successful management

team,” said Jonathan Pollock, Partner and Co-Chief Executive of Elliott,

and leader of this initiative. “Elliott and Wand have partnered on

insurance investments since 2009 and have a successful track record of

supporting incumbent management teams with access to significant capital

resources to strengthen the financial profile of the businesses and

accelerate their growth. We look forward to building on Prosperity’s

sound platform for stability and growth.”

Barclays has acted as exclusive financial advisor and Debevoise &

Plimpton LLP has acted as legal advisor to Prosperity in the

transaction. Greenberg Traurig and Akin Gump Strauss Hauer & Feld LLP

have acted as legal advisors and Ernst & Young has acted as accounting

and tax advisors to Elliott and Wand.

About Prosperity Life Insurance Group, L.L.C.

Prosperity Life Insurance Group, L.L.C. is a leading insurance

organization, which provides financial security to individuals and their

families through innovative protection, supplemental insurance and asset

accumulation products. Its principal operating subsidiaries are

Shenandoah, SBLI USA and S.USA.

About Wand Partners

Since its inception in 1985, Wand Partners has been focused primarily on

specialty financial services, particularly insurance. Over the years,

Wand has successfully sponsored and invested in thirteen platform

businesses in the insurance industry.

About Elliott Management Corporation

Elliott Management Corporation manages two multi-strategy funds which

combined have more than $34 billion of assets under management. Its

flagship fund, Elliott Associates, L.P., was founded in 1977, making it

one of the oldest funds of its kind under continuous management. The

Elliott funds’ investors include pension plans, sovereign wealth funds,

endowments, foundations, funds-of-funds, high net worth individuals and

families, and employees of the firm.

About Reservoir Capital Group, L.L.C.

Reservoir Capital Group, L.L.C. is a privately held investment firm with

a flexible, opportunistic investment approach. Reservoir invests

directly in securities and structured private investments, builds

platform companies with industry specialists, and creates new hedge

funds and private equity firms in which the Reservoir funds hold

ownership or other economic interests. Reservoir currently has

approximately $3.8 billion of capital under management.

About Black Diamond Capital Partners I, L.P.

Black Diamond Capital Partners I, L.P. is a private equity fund focused

on investments in the insurance industry. The principals have extensive

insurance industry experience and have worked closely with Reservoir on

insurance transactions for over a decade.

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