ZUG, Switzerland, Jan. 10, 2013 /PRNewswire/ -- Allied World Assurance Company Holdings, AG announced today an investment agreement between Allied World Financial Services, Inc., and Crescent Capital Group LP, a privately held asset management firm that specializes in public and private below investment grade assets spanning the entire credit capital structure. Under the terms of the transaction, Allied World Financial Services acquired a minority ownership interest in the firm and Crescent will manage $500 million of Allied World's investment portfolio to be deployed across a diversified set of credit strategies, over the next several years.
"Crescent Capital has over 20 years of experience investing in below investment grade credit and structured products, and I am extremely confident in its management team and investment process," commented Scott Carmilani, President and CEO of Allied World. " Mark Attanasio, Jean-Marc Chapus and their investment team have a proven track record of generating strong returns for Crescent's client base. Their investment strategies complement Allied World's existing credit strategies and relationships, and we believe this will be an extremely beneficial relationship for both parties."
John Gauthier, President of Allied World Financial Services, added, "Since the launch of our financial services platform, we have announced four strategic partnerships that complement our core insurance and reinsurance operations. We believe these deals will help Allied World manage our expenses, optimize our investments returns, and over time, provide earnings to AWH shareholders. The Crescent transaction, with its diverse credit strategies, will complement our previously-announced transactions, and we are excited about welcoming the Crescent team into our financial services family."
"We are confident our partnership with Allied World will enhance our ability to serve the growing needs of investors looking for proven credit strategies that deliver differentiated risk-adjusted -returns," said Mark Attanasio, Co-Founder and Managing Partner of Crescent Capital. "This investment demonstrates Allied World's confidence in our investment process, people and performance, all of which we have been proud of since founding the group over two decades ago. Jean-Marc Chapus and I, and our team are excited to work with our new partner."Berkshire Capital Securities, LLC advised Allied World on the transaction.