American Equity Expands into Middle Market Private Credit with Adams Street; Announces Plans to Form Joint Venture to Bring A...
18 February 2021 - 12:00AM
Business Wire
American Equity Investment Life Holding Company (“ American
Equity”) (NYSE: AEL), a leading issuer of general account
annuities, and Adams Street Partners (“Adams Street”), a global
leader in private markets investments, announced they have reached
an agreement to form a joint venture for co-developing insurer
capital-efficient products in middle market credit, with American
Equity initially committing up to $2 billion to the investment
strategy.
Under the terms of the agreement, American Equity and Adams
Street will form a new management company that intends to sponsor
and manage investment vehicles established primarily to invest in
secured loans to US middle market private companies backed by
private equity sponsors.
Adams Street has deep experience across the entire spectrum of
private markets and currently manages $44 billion of assets across
primary, secondary, growth equity, credit and co-investment
strategies. In Private Credit, Adams Street pursues debt investment
opportunities in middle market companies across the entire capital
structure.
“We are pleased to announce our intent to partner with Adams
Street as part of diversifying our investing activity in secured,
first lien middle market credit and build a new business to bring
this asset class to other insurers,” said Anant Bhalla, CEO of
American Equity. “We expect this partnership model to be the
blueprint for AEL’s execution of our 2.0 business model investment
pillar with best in class asset managers in private credit and real
assets. I am personally thrilled to partner with Jeff, Bill and
team as we feel a strong sense of kinship with their risk and
investment culture.”
“The partnership between Adams Street and American Equity is an
exciting development for our private credit business,” said Jeff
Diehl, Managing Partner and Head of Investments at Adams Street.
“American Equity has exactly what we look for in a partner - a
great culture, high-integrity people, and a focus on generating
returns for investors.”
Bill Sacher, Partner and Head of Private Credit at Adams Street,
said, “We are very excited to be partnering with American Equity.
The partnership will enable us to further expand our presence and
capabilities as a lead lender to middle market companies backed by
private equity sponsors while also creating attractive private
credit assets for American Equity. This is an advantageous time in
the market to be launching the venture and we look forward to
building on this base.”
The partnership is intended to be operational in the first half
of 2021.
ABOUT AMERICAN EQUITY
American Equity Investment Life Holding Company, through its
wholly-owned operating subsidiaries, is a leading issuer of fixed
index annuities through independent agents, banks and
broker-dealers. American Equity Investment Life Holding Company, a
New York Stock Exchange listed company (NYSE: AEL), is
headquartered in West Des Moines, Iowa.
ABOUT ADAMS STREET PARTNERS
Adams Street Partners is one of the largest and most established
private markets investment management firms in the world. Adams
Street commenced its investment program in 1972, and today manages
$44 billion of assets across five strategies – primary and
secondary private fund investments, co-investments, private credit
investments, and direct growth equity investments. Adams Street
employs more than 210 people in Chicago, Beijing, Boston, London,
Menlo Park, Munich, New York, Seoul, Singapore, and Tokyo.
Visit www.adamsstreetpartners.com
This press release is for informational purposes only and should
not be construed as investment advice or an offer, or solicitation
of an offer, to buy or sell securities either generally or in any
jurisdiction where the offer or sale is not permitted.
NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within
the meaning of The Private Securities Litigation Reform Act of
1995. Forward-looking statements relate to future operations,
strategies, financial results or other developments, and are
subject to assumptions, risks and uncertainties.
Statements such as “intend”, “expect”, “anticipate”, “believe”,
“target”, “may”, or similar words as well as specific projections
of future results qualify as forward-looking statements. Factors
that may cause our actual results to differ materially from those
contemplated by these forward-looking statements can be found in
the company’s Form 10-K filed with the SEC. Forward-looking
statements speak only as of the date the statement was made, and
the Company undertakes no obligation to update such forward-looking
statements. There can be no assurance that other factors not
currently anticipated by the Company will not materially and
adversely affect our results of operations. Investors are cautioned
not to place undue reliance on any forward-looking statements made
by us or on our behalf.
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version on businesswire.com: https://www.businesswire.com/news/home/20210217005485/en/
For American Equity Steven Schwartz | Head of Investor Relations
American Equity Investment Life Holding Company®
sschwartz@american-equity.com
For Adams Street Partners Rich Myers | Managing Partner Profile
Advisors rmyers@profileadvisors.com
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