Prosperity Life private equity owners sell the business
US-based Prosperity Life Insurance Group, a provider of protection, supplemental and asset accumulation products, has been bought by an investor group including hedge fund manager Elliott and insurance-focused private investment firm Wand Partners.
Reservoir Capital Group and Black Diamond Capital Partners have agreed to sell 100 percent of their ownership interests in Prosperity to an investor partnership including Elliott, Wand, and Prosperity CEO Anurag Chandra.
The transaction is expected to be completed in the third quarter of 2018. Upon completion, Prosperity will maintain its current management, strategy, distribution and employee base, while obtaining access to significant additional capital and resources to accelerate growth.
Prosperity operates through its member companies Shenandoah Life Insurance Company, SBLI USA Life Insurance Company, and S.USA Life Insurance Company.
“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 CEO Chandra. “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.”
Jonathan Pollock, partner and co-chief executive of Elliott, and leader of this initiative, commented: “We are very pleased to have reached agreement to acquire Prosperity and look forward to backing this entrepreneurial and successful management team.
"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.”
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