Assured Guaranty completes asset management combination with Sound Point

Assured Guaranty announced the completion of the combination of substantially all of Assured Guaranty’s asset management business with Sound Point Capital Management. As part of the transaction, Assured Guaranty has contributed its entire equity interest in Assured Investment Management LLC and, with certain AHP-related exceptions, its related asset management entities to Sound Point, effective July 1, 2023. In addition, the investment agreement under which U.S. insurers Assured Guaranty Municipal Corp. and Assured Guaranty Corp. engaged Sound Point as their sole alternative credit manager to invest $1V over time in alternative credit strategies managed by Sound Point, is now effective; this amount includes the approximately $400M that was previously managed by AssuredIM. Assured Guaranty received a 30% ownership interest in Sound Point’s combined business, subject to potential post-closing adjustments. Assured Guaranty expects the transaction to be immediately accretive to its earnings per share, return on equity and book value per share, as well as its adjusted operating shareholders’ equity per share and adjusted book value per share. With the combination of assets, Sound Point becomes the fifth largest global CLO manager by AUM.