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.
<p style="text-align: center">http://www.dailymotion.com/video/x3x97i0
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.